Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

PRECIOUS-Gold drops as dollar gains, economies gradually re-open

Published 05/06/2020, 06:22 PM
Updated 05/06/2020, 08:10 PM
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
GLD
-
DXY
-
UGLDF
-

(Updates prices)
* SPDR gold holdings jump to 7-year high
* Palladium hovers around more-than 1-month low
* For an interactive graphic tracking the global spread,
open https://tmsnrt.rs/3aIRuz7
in an external browser

By Brijesh Patel
May 6 (Reuters) - Gold prices fell on Wednesday as the
dollar rose to its highest in more than a week and easing of
coronavirus-driven restrictions by many countries improved
investor appetite for risky assets and dulled demand for
bullion.
Spot gold XAU= was down 0.4% to $1,698.96 per ounce by
0957 GMT. U.S. gold futures GCcv1 fell 0.2% to $1,708.10.
"A lack of jewellery demand, and very positive sentiment in
the equity markets as economies are re-opening is pressuring
gold prices," Commerzbank analyst Eugen Weinberg said.
Many countries like Italy, Germany and the United States are
tentatively easing lockdowns. MKTS/GLOB
Further denting gold's appeal, the dollar index .DXY rose
0.4% to a more than one-week high.
Gold prices had ended higher in the previous three sessions
as uncertainty about the global economy remained with the virus
still spreading and as U.S.-China trade tensions re-surfaced.
U.S. President Donald Trump urged China to be transparent
about the origin of the virus as his administration weighs new
tariffs on Beijing for its handling of the virus. "Technically the trend remains bullish, as investors are
still buying gold as insurance in case of a second wave of
coronavirus, while central banks are forced to print large
quantities of money to mitigate the crisis," ActivTrades chief
analyst Carlo Alberto De Casa said in a note.
The coronavirus, which has infected more than 3.68 million
people globally, has battered global growth and prompted nations
to unleash massive fiscal and monetary measures to limit
economic damage.
Gold tends to benefit from widespread stimulus measures from
central banks because it is widely viewed as a hedge against
inflation and currency debasement.
Reflecting investor interest in gold, holdings in the
world's largest gold-backed exchange-traded fund (ETF), SPDR
Gold Trust GLD , rose 0.4% to 1,076.39 tonnes on Tuesday, the
highest level since April 2013. GOL/ETF

Market participants are now waiting for the ADP National
Employment Report on private U.S. payrolls due later in the day.
Elsewhere, silver XAG= gained 0.1% to $15.03 per ounce and
platinum XPT= dropped 0.5% to $760.55.
Palladium XPD= slipped 0.3% to $1,796 per ounce after
hitting its lowest in more than a month on Tuesday. Prices of
the metal, widely used in auto catalytic converters, have
plunged nearly 40% from a record high hit on Feb. 27.
Prices of platinum group metals could fall 15-20% in the
near term on a rising surplus, although it could be seen as a
longer-term buying opportunity, Citigroup said in a note.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
SPDR gold holding jump to 7-year high IMAGE https://tmsnrt.rs/2SGb9IG
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.