Gold slides on hopes of recovery in economic growth

Gold fell on Thursday on hopes of a swift

recovery in growth following easing of lockdowns and possibility

of a coronavirus vaccine, but bleak data from major economies

limited losses.

Spot gold slid 0.7% to $1,737.09 per ounce by 0744

GMT. U.S. gold futures slipped 0.8% to $1,738.40.

Global equities surged overnight, though gains during Asian

hours were limited by lingering caution about the long-term

impact of the coronavirus outbreak.

“There is still some optimism and risk-on sentiment about

the possibility of a vaccine and talks of lockdown easing and

growth slowly picking up,” said National Australia Bank

economist John Sharma.

“But it not a huge thing and if it was major, we would see

gold going below $1,700.”

Gold rallied to its highest since October 2012 on Monday,

driven by economic damage concerns, U.S.-China tensions and

massive monetary and fiscal stimulus.

U.S. Federal Reserve policymakers acknowledged the

possibility of further support measures if the economic downturn

persists, the minutes from the latest policy meeting showed.

The latest round of dismal economic indicators have

underscored the extent of damage inflicted by the virus, with

data showing Britain’s inflation slumped to its lowest since


The initial U.S. jobless claims data due later in the day

will be the next focus for further clues about the health of the

world’s top economy.

Palladium dropped 1.4% to $2,071.81 an ounce, after

hitting a one-month high on Wednesday. Platinum fell 0.9%

to $842.78.

ANZ analysts expect weaker auto sales to be the key downside

risk for the platinum group metals this year and see demand

contracting for both palladium and platinum.

“Mine supply disruptions could protect the downside; still

we see prices staying volatile amid the ongoing macroeconomic

challenges,” they said.

Silver declined 1.6% to $17.23 an ounce.

(Reporting by Swati Verma and K. Sathya Narayanan in Bengaluru;

Editing by Subhranshu Sahu and Rashmi Aich)

Bestsellers from Amazon

Leave a Reply

Your email address will not be published. Required fields are marked *