Gold down 1% as riskier assets rebound

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Singapore: Reuters

Gold fell by more than 1 per cent yesterday, retreating from a jump in the previous session to exceed the level of $ 1700 as it raised hopes of global stimulus measures to alleviate the impact of the economic impact of the spread of the Corona virus and the higher-risk assets. And gold fell in immediate transactions 1.4 percent to $ 1656.24 an ounce by 05:30 GMT after touching its highest level since December 2012 at 1702.56 dollars yesterday due to fears of the global spread of the disease. U.S. gold futures fell 1.1 percent to $ 1657.10.

“The appetite for risk has begun to come back due to fiscal policy actions by the United States and Japan, and this is negative for gold in the short term,” said Stephen Ines, chief market strategist at Axi Corp. US President Donald Trump said he would take “major” steps to prepare his country’s economy to cope with the impact of Corona’s spread. The Japanese Minister of Economy said that his government will not hesitate to take the necessary and appropriate steps to balance the major effects on its economy from the global spread of the virus. An official at the Japanese Finance Ministry said that his country is in contact with the Trump administration, which is working on an economic package.

“This is only the beginning of what can be described as the domino effect, and I expect that the rest of the Asian governments will follow the steps of these steps with similar packages,” Ince said. The holdings of SBDR Gold Trust, the world’s largest gold-backed ETF, increased to 30.99 million ounces, the highest level since October 2016. As for other precious metals, palladium rose 0.5 percent to $ 2502.99 an ounce after touching a level near the lowest price. In a month in the previous session. Silver increased 0.2 percent to $ 17.01 an ounce. Platinum rose 1.5 percent to $ 875.24 an ounce.

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