The rampant sell-off in global financial markets appears to have finally caught up with gold, sending prices below $1,500 early on Tuesday even as coronavirus concerns continue to dominate the sentiment worldwide. At the time of writing, GOLD is trading at around $1,490.

Gold prices slipped to their lowest level since late November to $1,456.80 but have recovered slightly since then. Stock markets continued to weaken around the world, and while this traditionally supports the safe haven appeal of gold, the worries about the economic impact of the coronavirus pandemic have created panic selling across all instruments.

According to analysts, gold has suffered despite the risk-off sentiment in markets as investors turn away from all instruments and rush for liquidity in times of heightened uncertainty owing to the rapid spread of the virus. The focus appears to be on cutting losses and generating ample cash in hand at the moment, sending gold prices lower as a result.

This rush for cash has helped boost the US dollar, which shares a negative correlation with the precious metal. Several funds and investors closing their positions and taking profits in gold have also lowered the demand for the metal in markets and driven prices down for now.