PRECIOUS-Palladium slumps nearly 13%, gold up to 4.6% as precious metals join virus-led free fall

(Updates prices)
* Palladium facing its worst daily performance since 2008
* Palladium sheds about $390 from Thursday's record high
* Platinum on track for worst week since 2008
* Silver set for its biggest weekly decline since 2011

By Swati Verma
Feb 28 (Reuters) - Palladium led a free fall in precious
metals on Friday, slumping nearly 13% at one point earlier in
the session, while gold slid as much as 4.6% en route to its
biggest daily drop in almost seven years, as coronavirus drove
panic-stricken investors to liquidate assets across the board.
The rout hammered other precious metals as well, with
platinum declining as much as 6.1% and silver sliding 7.4%.
"A lot of investors and traders are having to meet margin
calls for other products, so they are selling what they can.
That's why it is hitting gold and the gold mining stocks," said
Michael Matousek, head trader at U.S. Global Investors.
"People are trying to sell whatever they can. It's an
overall sell-off."
Spot gold XAU= plunged 4.5% to $1,568.96 per ounce as of
2:15 p.m. EST (1915 GMT), leading to the biggest one-day
percentage decline since mid-2013. U.S. gold futures GCcv1
settled down 4.6% at $1,566.70.
The precious metal saw sharp price swings this week, having
hit a seven-year high of $1,688.66 on Monday. The metal is now
on track to post its steepest weekly decline since November,
2016.
The rapid spread of the coronavirus raised fears of a
pandemic, with six countries reporting their first cases and the
World Health Organization warning it could spread worldwide.
The virus panic sent world share markets on course for their
worst weekly fall since 2008, with almost $6 trillion wiped from
their market value so far this week. MKTS/GLOB
"As sentiment has deteriorated, investors have closed some
of their open positions in currencies, but most likely also in
gold. Therefore, gold prices have failed to make new highs now
that equity markets have aggressively sold off," ABN Amro
analyst Georgette Boele wrote in a note.
"If risk aversion were to result in a market panic,
investors will find cash and very liquid assets attractive. They
will probably liquidate gold investment positions."
In other precious metals, palladium XPD= was down 10.8% to
$2,538.21 per ounce, its worst one-day performance since the
2008 financial crisis, after slumping 12.7% earlier in the day.
The metal has shed about $390 from a record high of $2,875.50
hit on Thursday.
"With palladium it is a similar phenomenon, where people
need to sell to cover up their losses elsewhere," said Ryan
Giannotto, head of research at GraniteShares.
The auto catalyst metal was still on track to gain for the
seventh consecutive month due to a sustained supply shortfall.
Platinum XPT= shed 5.5% to $849.63, facing its worst
weekly fall since 2008.
Silver XAG= plunged 7.2% to $16.43 an ounce, on track for
its worst week since 2011

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Gold/Silver ratio https://tmsnrt.rs/2I2COO3
Precious metals this week png https://tmsnrt.rs/2H8hN3X
Precious metals this week interactive https://tmsnrt.rs/2w1d6qw
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