Gold price drops more than 2% after five consecutive winning days

| |

By Alex Ho

Investing.com – Gold prices in Asia fell more than 2% on Tuesday and are expected to see their first decline in five days.

Gold futures for delivery in April fell 2.3% to $ 1,638.75 by 01:59 a.m. (05:59 a.m. GMT).

The increase in the number of new coronavirus cases outside of China in recent days has supported the safe haven metal, which peaked at its 7-year highs last week.

Several Middle Eastern countries reported their first coronavirus cases today, while the spread of the virus continued in South Korea and Italy.

Profit-taking has been cited as the reason for the sale of gold today, although growing fears of an increase in new coronavirus cases have understood the loss of gold bars.

“The 1% decrease was due to margin calls, but it definitely triggered an additional wave of profit-taking,” said Stephen Innes, chief market strategist at AxiCorp, in a Reuters report.

“In such an environment where stock markets are collapsing, it is easy to cover the margin call. (But) gold should find support given the mostly risky market,” he added.

Some analysts believe that the worsening virus situation could force the Federal Reserve to lower interest rates to support economic growth.

Lower interest rates increase the attractiveness of asset classes like gold that do not earn interest.

Meanwhile, U.S. Treasury Secretary Steven Mnuchin told Reuters in an interview that he did not expect the outbreak to have a significant impact on the US-China phase 1 trade agreement, although this could change as more data becomes available in the coming weeks.

Related articles

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Oil stabilizes on a bargain hunt; Virus fears cap gains“data-reactid =” 34 “> Oil stabilizes on a bargain hunt; virus fears cap gains

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "China has a record stock of steel as demand has hit“data-reactid =” 35 “> China has a record stock of steel as demand has hit

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Oil prices stable after closing 4% lower given concerns about weakening Chinese demand“data-reactid =” 36 “> Oil prices stable after closing 4% lower given concerns about weakening Chinese demand

Previous

The White House is looking for $ 2.5 billion for coronavirus, but Pelosi says that’s not enough

A Korean Air flight attendant has tested positive for corona virus as people are desperately trying to cancel flights with the airline

Next

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.