An Argor-Heraeus SA brand gold bar weighing two hundred and fifty grams, in the center, is found in this photograph arranged at Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images
Gold prices fell more than 1% Tuesday, retreating from their highest level of a month earlier during the session, as signs of a slowdown in coronavirus cases in major epicenters have boosted the stock markets, removing some of the lure of the bullion.
Spot gold fell 0.6% to $ 1,651.15 an ounce, after hitting a close to one month high at $ 1,671.40.
“What we are seeing in the stock markets is more stabilization with the record number (coronavirus) in some US jurisdictions,” said Bart Melek, chief of commodity strategies at TD Securities. “All that really tells us is that there could be an end to the game, but by no means is the world benign and risk-averse,” he said, adding that expectations of more stimulus with lower long-term interest rates will continue to support gold. prices.
Global equity markets posted a second day of significant gains on signs of progress against the coronavirus in Europe and the United States.
Eurozone finance ministers hoped to agree half a trillion euros in economic aid to finance the recovery, while Japanese Prime Minister Shinzo Abe declared a state of emergency and launched a plan to stimulus of nearly $ 1 trillion to mitigate the economic blow. Gold prices rose 3.2% in the previous session.
“The underlying reason why we rallied in recent days was not only due to the widening of the spread (between spot gold and COMEX), but also to the fact that we see additional measures being touted by central banks, “said Ole, analyst at Saxo Bank. Hansen. “They are already talking about the next package in the United States to be released after Easter, a trillion dollar package. As long as we see these initiatives combined with the potential for a softer dollar, the upside potential for gold is still there.” ”
Meanwhile, gold futures in the United States eased 0.3% to $ 1,688.90, but stayed ahead of London spot prices, noting market fears that refinery closings and logistical constraints could hinder bullion shipments to the United States to meet contract requirements.
Gold stocks held in New York safes registered with the CME group have jumped nearly 50% since the end of last week, as the stock market launched a new contract and a price premium since the epidemic has encouraged traders to stockpile.
Palladium gained 2.7% to $ 2,213.69 an ounce, platinum rose 0.2% to $ 736.50 and silver jumped 1.1% to $ 15.15.