Economy Gold price drops more than 2% after five consecutive...

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

Advertisements

LEAVE A REPLY

Please enter your comment!
Please enter your name here

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

Latest news

The EU asks the US to reconsider its decision to break with the WHO

The EU has called on the United States to "reconsider" the decision announced by Washington to break with the...

Spain wants to welcome tourists, especially French, from June

Spain plans to welcome French, German or Scandinavian tourists from the end of June. This is indeed the ambition...

Guillaume Cizeron doesn’t “want to be the gay skater, but the medalist skater”

His speaking will count. Four-time world champion, five-time European champion and 2018 Olympic vice-champion in ice dancing, skater Guillaume...

Must read

The EU asks the US to reconsider its decision to break with the WHO

The EU has called on the United States to...

Spain wants to welcome tourists, especially French, from June

Spain plans to welcome French, German or Scandinavian tourists...

You might also likeRELATED
Recommended to you