First we had unprecedented dysfunction in the gold futures markets with dramatic paper and physical price divergences amid virus-inspired geographical shortages for deliverables.

"I've never seen that before," said one gold trader who has been in the market for 30-plus years.

Saxo Bank's head of commodity strategy, Ole Hansen, observed that a lockdown is occurring in two biggest gold hubs in the world, New York and London,  so many traders are working from home. "This has caused a breakdown in the marketplace", he said.

"There is no price discovery in the market right now," he said Tuesday morning. "If you need to borrow gold in the OTC [over-the-counter] markets right now, you are going to pay a king's ransom."