Gold prices fell more than one percent today, Friday, as the appetite for risk improved thanks to initial plans to reopen the US economy and early indications of the success of a pilot drug to treat Covid-19 disease.
And gold fell in spot transactions 0.9 percent to $ 1701.99 an ounce, after falling 1.9 percent earlier in the session. But the yellow metal is up about 0.5 percent since the start of the week, and is heading towards the second weekly rise in a row due to growing concerns about the worst recession in decades.
And gold fell in US futures 0.7 percent to $ 1718.80 an ounce.
While there is a time mismatch between the financial markets and the real economy, reopening the US economy signals a recovery that may come at a slightly faster rate than expected, which in turn puts pressure on gold, said Stephen Ines, chief market analyst at financial services firm Axi Corp.
On Thursday, US President Donald Trump proposed directives aimed at stimulating the US economy from the Corona-related closures.
Gold prices fell as the dollar, which is considered a safe haven, fell after an encouraging report linked to a US pilot drug to treat Covid-19 disease.
Investors were also shocked by data from China, which showed the country’s economy contracted for the first time since at least 1992 in the first quarter due to an outbreak of the Corona virus, although industrial production fell less than expected to fall 1.1 percent in March compared to its level a year ago.
For other precious metals, palladium gained 2.1 percent to $ 2199.18 an ounce, while silver fell 2.6 percent to $ 15.21 an ounce, and platinum fell 0.9 percent to $ 776.21 an ounce.