Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

PRECIOUS-Gold dips on modest progress against coronavirus

Published 07/04/2020, 07:05 pm
Updated 07/04/2020, 10:42 pm
© Reuters.

© Reuters.

(Updates prices)

* U.S. gold futures extend lead over London spot prices

* Palladium, platinum and silver all in positive territory

By Brijesh Patel

April 7 (Reuters) - Gold prices fell on Tuesday, retreating from a one-month high hit earlier in the session as risk sentiment improved on wider market optimism after tentative signs of progress against coronavirus outbreaks in some countries.

Spot gold XAU= lost as much as 1% and was 0.4% down at $1,654.83 an ounce by 1212 GMT, having touched a one-month high of $1,671.40.

"Risk appetite is back in the markets as new infections are declining. That's weighing on gold prices. Also higher yields are negative for gold," said Quantitative Commodity Research analyst Peter Fertig.

"However, some investors fear that monetary policy would lead to inflation. For them, buying gold at these levels remains attractive."

Cautious optimism around a slowdown in reported cases of the new coronavirus in some countries lifted European shares for a second day, even as companies continued to take steps to shore up cash after lockdowns crushed global demand. .EU

More than 1.32 million people worldwide have been reported as infected by the virus and 74,087 have died. British Prime Minister Boris Johnson was taken into intensive care on Monday after his symptoms worsened. pandemic has rattled financial markets over the course of the past quarter and prompted nations to extend lockdowns to curtail its spread.

Japanese Prime Minister Shinzo Abe, poised to announce a state of emergency for Tokyo and six other prefectures, unveiled plans for a stimulus package to support the economy. investors are revelling in the level of central bank stimulus and fiscal spending, especially when it raises government debt levels," said Stephen Innes, chief market strategist at financial services firm AxiCorp.

Indicative of sentiment, the holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , rose 0.5% to 984.26 tonnes on Monday - its highest in more than three years.

U.S. gold futures GCv1 rose 0.6% to $1,704.10, extending a lead over London spot prices and signalling market concern that refinery closures and logistics constraints could hamper bullion shipments to the United States to meet contract requirements.

The increase came despite measures from the CME Group's CME.O Comex Exchange to ease supply concerns and assurances from the London Bullion Market Association. XPD= was 1.3% higher at $2,182.58 an ounce after rising more than 3% in early trading. Platinum XPT= was up 0.6% at $739.89 and silver XAG= jumped 1.3% to $15.19 after touching a more than three-week high.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.