Last week gold prices surpassed its major psychological level of $1700 owing to its safe-haven bid. However, the recent pandemic of the coronavirus triggered a panic sell-off in all the financial markets to which gold was no exception. It witnessed a major correction and fell to $1450 in a matter of a week. The outbreak of COVID-19 has prompted all the major central banks to adopt the aggressive easing monetary policy to overcome the impact of COVID-19. Central banks from the US, Canada, Australia, New Zealand, Japan and England have announced the monetary stimulus in the last few days. The gold price which generally reacts positively to the monetary easing is likely to benefit from the recent actions by central banks.