Gold fell today, Monday, as investors sold the yellow metal to take profits after its prices reached the highest level in the month of last week, while fears about a deeper economic downturn driven by the Corona virus and stimulus measures from the Federal Reserve (the US central bank) curbed gold losses.
“We are seeing very little reversal on Friday evening’s moves, which were driven by the latest policy move by the Fed. There is limited profit taking happening,” said Kyle Roda, analyst at IG Markets, adding that gold faces strong technical resistance near the $ 1690 level.
“But in general, gold is still receiving very good support.”
In an effort to keep the economy running in light of the outbreak, which has forced 16.8 million Americans to apply for unemployment benefits since the week ending March 21, the US central bank announced on Thursday a $ 2.3 billion stimulus package.
The European Union finance ministers also agreed to half a trillion euros of economic support, but they left the question of how to fund the recovery in the bloc, which is heading towards a deep recession without answer.
The prices of commodities linked to primary commodities decreased against safe havens such as the dollar and the yen, as an agreement on a record reduction in oil production by large producing countries failed to dispel the impact of wider concerns about global demand for resources, while stocks fell across the world as investors prepared for more economic damage Caused by the Corona virus pandemic.
For other precious metals, palladium rose 3.4 percent to $ 2245.48 an ounce, while platinum fell 0.9 percent to $ 741.60 an ounce, and silver fell 0.5 percent to $ 15.24.
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