A bloody night! The dow plunged nearly 10%, its worst since black Monday in 1987. Gold plunged nearly $60! The days of woe are numbered!

The financial markets had another bloody night. In the second circuit breaker of the week, the dow jones industrial average closed down nearly 10 percent, more than 2,350 points, while the s&p 500 and NASDAQ also fell nearly 10 percent. The “plunge” in gold prices was accompanied by the stock market plunge. Gold closed down nearly $60 on Thursday, after briefly closing close to $1,560 an ounce. Asian stock markets continued to tumble in early trading on Friday, with South Korea triggering a circuit breaker and Australia and Japan both falling nearly 7 percent.

The dow plunged nearly 10%, its biggest drop since Black Monday in 1987

Stocks tumbled again Thursday as President Donald Trump and the federal reserve failed to dispel fears of an economic slowdown caused by the coronavirus.

The dow jones industrial average closed down 2,352.60 points, or 9.99%, at 21,200.62, the biggest drop since the Black Monday market crash of 1987, when it fell more than 22%.

The s&p 500 fell 9.5% to 2,480.64, its worst day since 1987. The NASDAQ composite index closed down 9.4% at 7,201.80.

“This coronavirus is scary,” said Kathy Entwistle, senior vice president of wealth management at UBS. “people don’t know what’s going to happen. It looks like a tsunami is coming. We knew it would explode one day, but no one knew how it would turn out.”

Shortly after the start of trading on Thursday, the shutdown was triggered for the third time in history and the second time this week as the s&p 500 fell more than 7%. Major indexes took a brief break in midday trading after the fed announced on Thursday that it would expand overnight funding to more than $500 billion. The fed will provide more repo operations totaling $1 trillion on Friday. The fed has also expanded the types of securities it buys with its reserves.

However, stocks quickly fell back to their intraday lows as investors waited for more aggressive measures to support the economy and respond directly to the outbreak. Some Wall Street analysts believe that this shows that the U.S. stock market has entered a bear market, and before the fall to 30%, the stock market will not stop selling.

The VIX risk index jumped above 68 on Thursday, its highest level since 2008.

Thursday’s historic market declines suggest investors don’t think the government’s fiscal plans and the federal reserve’s efforts to ramp up financing will be enough to offset the economic impact of the coronavirus.

On Thursday afternoon, mayor bill DE Blasio declared a state of emergency in New York City, threatening to close Madison square garden and other venues for months. He said the world appeared to have been turned upside down in a matter of hours last night and predicted the number of confirmed cases would rise to 1,000 by next week. Of the 95 new cases reported in New York City, 42 were confirmed in the past 24 hours.

According to the Associated Press, the U.S. Congress has decided to close the Capitol building and the house and senate offices until April 1.

World stock markets plunged into the bear market territory and oil prices fell more than 5 percent after President Donald Trump announced restrictions on travel from Europe to the United States in an effort to prevent the spread of a new outbreak that could cause more disruption to the world economy.

The latest data released by the world health organization (who) on March 12 (local time) shows that more than 40,000 new cases of crown pneumonia have been confirmed outside China, bringing the total number to 44,067.

According to the who’s daily outbreak report, the number of newly confirmed cases of pneumonia outside China rose by 6,703 to 44,067 as of 10:00 pm central European time (17:00 GMT) on Tuesday. The number of deaths outside China rose 310 from the previous day to 1,440. Globally, the number of new crown pneumonia cases increased by 6729 to 125,048. The number of deaths increased by 321 to 4,613 from the previous day.

Australia’s S&P/ASX200 index extended losses to nearly 7% after the Asian market opened on Friday. South Korea’s KOSPI index fell 8%, triggering a circuit breaker. The nikkei 225 index extended its decline to 7 percent as it tumbled to its lowest level since November 2016.

Gold plunged nearly $60

Gold prices closed down more than 3 percent, or nearly $60, on Thursday, after closing close to $1,560 an ounce, as investors sold gold to make margin calls on other assets. The dollar index rose 1.5 percent, putting further pressure on gold.

Gold surged above $1,700 an ounce for the first time since late 2012 on Monday and has since given up all its gains. Then, as the outbreak spread rapidly, investors made a beeline for safe-haven assets.

Some analysts said there appeared to be further signs of panic, with global equity markets falling sharply, which could put pressure on investors to cash in on margin calls.

Spot gold fell as low as $1,560.66 an ounce in Thursday trading to $1,576.66 an ounce, down $57.94, or 3.54 percent.

“Gold fell as investors scrambled for cash,” said Ed Moya, an analyst at online trading platform OANDA. He thinks there will be technical buying around $1,550, but if we break below that we could easily see another $100 drop to $1,450 an ounce.

“It’s a rush to liquidate assets,” said David Meger, head of metals trading at High Ridge Futures. What we have seen is an indiscriminate sell-off of every asset class by market participants and investors. “People are unwinding their gold and silver positions to finance their equity positions or whatever.”

According to a recent article on Economies.com, gold fell sharply after falling below the $1,633.60 an ounce level and briefly touched the main bullish channel support line. Gold is waiting for a rebound to resume the main bullish trend in the above channels.

But Economies.com points to the need to confirm that gold can consolidate above $1,555.00 an ounce to start a new bullish trend, targeting first the $1,633.60 and then the $1,689.30 area.

Consider that if gold were to fall below $1,555.00 an ounce, this would lead to a continuation of the decline, with the next target at $1,509.00 an ounce, Economies.com added.

Gold may not have hit bottom yet

In a report released Wednesday, Georgette Boele, precious metals strategist at ABN AMRO, questioned gold’s traditional role as a safe-haven asset.

She said she expects gold prices to struggle through the rest of 2020 as weak global growth weighs on jewelry demand and investors seek the dollar as a haven.

Boele points out that during the 2008 financial crisis, gold prices fell 20 percent. Meanwhile, the dollar rose sharply as market liquidity dried up.

In its latest report, ABN Amro expects gold to average $1,523 an ounce this year, up from its previous forecast of $1,490, but well below current prices.

After a roller-coaster ride to a seven-year high above $1,700 an ounce, gold has now fallen below $1,600, which Standard Chartered blames on profit-taking as stocks tumbled in a panic.

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