Gold prices in Asia are trading lower Wednesday morning despite continuing economic uncertainty.
The precious Yellow metal continued its losses from the previous session as gold futures were down 0.22% to 1,680 by 9:33 PM ET (2:33 AM GMT).
Gold prices tend to move in the opposite direction from stocks, but the 2 moved in the same direction for the 2nd day running. Asian stock markets opened mixed Wednesday with some losses.
“You have a bunch of shell-shocked market makers who are literally hiding under their desks and do not and possibly cannot make markets in any size, shape or form,” said the head of precious metals trading at Marex Spectron.
“Hence we have the lack of liquidity, the small volumes and the wide spreads.”
Improving investor sentiment as the data seems to indicate declining numbers of new COVID-19 cases is also impacting gold prices.
Risk appetite is back in the markets as new coronavirus infections are declining, that is weighing on gold prices in here.
Some investors fear that monetary policy would lead to inflation. For them, buying gold at these marks is attractive.
But some analysts were positive about the impact of various government economic packages for gold.
Gold investors really like the level of central bank stimulus and fiscal spending, especially when it raises government debt levels.
Have a healthy day, stay home, Keep the Faith!