Gold Price News and Forecast: XAU/USD declines in Asia as dollar catches bid
Gold declines in Asia as dollar catches bid
Gold is entrenched in the negative territory in Asia as the US dollar, the shiny metal's biggest nemesis, is benefitting from the renewed risk aversion in the equity markets. The yellow metal turned lower from $1,638 in early Asia and is hovering at session lows near $1,614 per ounce at press time, representing a 0.75% decline on the day.
Meanwhile, the futures tied to the S&P 500 are down 0.75% and stocks in Asia are also flashing red. The equities have come under pressure as the coronavirus outbreak gathered pace in the US over the weekend. Stocks put on a good show last week, possibly on the back of the fiscal and monetary stimulus lifelines provided by the US and other nations across the globe.
Gold seesaws around $1,630 as coronavirus woes prevail
Global markets continue to struggle with the coronavirus (COVID-19) pessimism as Gold takes rounds to $1,630, currently up 0.10% near $1,628, amid Monday’s Asian session. While the weekend headlines suggested US President Donald Trump removing quarantine from the hot-spot, the latest extension to social-distancing till April 30 seems to weigh on the risk-tone.
US President Trump, in his latest Coronacvirus Task Force Briefings, said to extend the social distancing till April 30. The Republican leader also anticipated that the highest point in death rates from the virus is likely to hit in two weeks. However, his teammates like Anthony S. Fauci and Deborah Birx might not agree as they earlier projected a heavy increase in the pandemic death toll and infection numbers.
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