Gold Prices Down as Asian Markets Report Gains


© Reuters.

By Gina Lee – Gold prices in were down on Tuesday morning as stock markets gained.

Prices of the yellow metal reached $1,645.3 overnight as investors reacted to the United States’ extension of COVID-19 to April 30 by seeking safe havens.

Article continues below Advertisement...

But failed to hold onto gains from the last session and fell by 0.37% at $1,637.1 by 9:34 PM ET (2:34 GMT). Asian markets reported gains today as China announced a of 52 for March, defying of a contraction.

“Gold is finally starting to shake its recent mantle as a risk asset and becoming more of a haven asset again, especially with the extension of national social-distancing controls through April 30,” Tai Wong, head of base and precious derivatives trading at BMO, told CNBC. “$1,600-$1,610 is solid technical support and has held resolutely which has also helped.”

BNP Paribas (PA:) agreed with Wong’s comments.

“The recessionary fallout of the Covid-19 outbreak on the global economy suggests investors are likely to continue to seek refuge in gold,” BNP analysts said in a note. “We expect demand for gold to remain strong, at least until such time that economic conditions stabilize and the outlook begins to improve following the raft of unprecedented stimulus measures put in place by governments and central banks alike.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here