Gold Retreats as Dollar Rises
Gold prices fell on Tuesday because of the strength of the dollar. On the other hand, the number of reported cases of the coronavirus decreased, so investors started moving towards more risky assets.
Gold fell 0.3% to $ 1,567.26 an ounce after reaching $ 1,576.76 on Monday, the highest record since February 4. US gold futures fell 0.6% to $ 1,570.10 an ounce.
Gold prices were low in global markets today. Despite that fact, uncertainty over the impact of the epidemic supported the safe-haven metal. David Meger, director of metal trade at High Ridge Futures, said that gold dropped slightly. However, there was another round of new highs in all the stock markets. This is because the impact of the coronavirus was slightly exaggerated.
Gold has been a Haven Amid Coronavirus Outbreak
Earlier in the season, US dollar-traded gold prices extended earnings to mark a new all-time high of $ 1,923.20 an ounce. Gold traded at new highs because investors turned to gold as a safe-haven asset. They sought refuge during the growing US-China trade dispute with the risk associated with a global slowdown.
Since the number of coronavirus cases has decreased in China, factories started reoperating. Under the circumstances, global financial markets have escalated to new highs.
Coronavirus is Still a Matter of Concern
On Tuesday, China’s senior medical adviser said that the coronavirus infections might be over by April. Moreover, the number of new cases is already diminishing in some places. However, in a testimony to a US Congressional committee, US Federal Reserve Chair Jarome Powell cited the threat from the virus and the long-term health concerns of the economy.
Gold is prone to see some selling pressure at higher levels, reports SMC Global. Simon Denham, an analyst at Capital, states that gold continues to benefit from a near-perfect whirlwind. There the weakness of currencies, low-interest rates, fears of inflation, and fears of financial stability are mixed. However, none of these fears seem to be nearing its end, so ascension continues.
Risk concerns about the coronavirus epidemic remain in place. Besides, positive economic data from the US has supported risk assets like investments, reported Abhishek Bansal, chairman and managing director of Abans Group.
Palladium fell 0.6% to $ 2,339.26 an ounce, silver dropped 0.7% to $ 17.63 an ounce and platinum rose 0.9% to $ 969.43 an ounce.
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