Gold Down as the Economy Frets Over the Coronavirus

Gold Down as the Economy Frets Over the Coronavirus

Gold was down in Asia on Tuesday morning as it had not been able to hold on to its gains from the previous session.

WTI Futures for May delivery fell overnight to -$37.63 in a record slump, a day ahead of the contract’s expiry on Tuesday.

In the wake of the fall, gold futures jumped as much as 1 percent as investors flocked to the yellow metal as Wall Street shares tumbled. Yet the futures dropped by 0.32 percent to $1,705.70 by 11:49 PM ET (4:49 AM GMT) as Asian stocks also took a tumbling after the report.

While the two typically shift in the opposite direction, Monday’s Reuters poll forecast that rising demand for gold will be balanced by strengthening the currency and poor retail consumption as the coronavirus spread continues to ravage global economies.

Also published on Monday, findings from a survey of Deutsch Bank investors showed that investors were less optimistic about returning to business as normal for Europe and the States ahead of the summer.

Bank of England Deputy Governor Ben Broadbent also added overnight that the economic recovery of the United Kingdom could be slowed down by market caution until the lockdown of the economy is lifted.

In the meantime, the U.S. Congress will vote on a new $450 billion plan later in the day for small companies and hospitals impacted by COVID-19.