Gold, silver may continue to slide in short term, 2-3% decline likely

Gold extended its downturn in the physical markets in Mumbai on Saturday

Gold prices are likely to remain under pressure in the short term with a possible decline of 2-3 per cent as investors look to cover margin calls in other asset classes, such as equities, metals, energy, and currencies, amid a global market sell-off triggered by the spread of coronavirus.

Most global stock markets suffered their worst week since the financial crisis of 2008. The Sensex ended the week with a 7 per cent loss, with about Rs 12 trillion of investor wealth being wiped off. On Friday, the Sensex plunged 1,448 points, or 3.6 per cent, prompting gold and silver investors