Saudi Arabia starts oil price war, gold price hits $1700 in Asian session

Gold price has fallen since reaching the high of several years. In the earlier session, due to risk aversion sentiment this week, most likely caused by the news and decision from Saudi Arabia and Russia, gold price has been pushed up to above $1,700 level,  reaching a high of $1,703.40.

But before the European opening, it fell 0.73% to $1,662.80. The rebound of Asian stock markets since the fall of more than 4%, may be one of the reason to trigger a drop in gold price. However, the market is still panic, making the gold price bounce back to $1,680 level.

The epidemic of the new crown virus has not changed positively which still continues to receive attention. With the bad new in oil market further, the investors are still shocked and believed that the short-term direction is unknown. The yield of the 10-year Treasury note are now reaching an all-time low of 0.4% level, reflecting a very strong demand in bond market under this pessimistic atmosphere.