Gold slipped for a 3rd day running as countries moves toward easing stay at home restrictions and reopening economies lessened desires for safe-haven assets.
Spain announced loosening measures after Tuesday’s weekly cabinet meeting. France’s PM to present the blueprint for opening up to the National Assembly.
Several US states have opened or are in the process of opening up.
The moves come even as the World Health Organization (WHO) still warns the coronavirus chaos is not over.
Gold is still near its highest in more than 7 yrs with investors tracking stimulus from governments and central banks to aid growth.
The Fed and the ECB are expected to make policy announcements Wednesday and Thursday respectively
“The gold market is in a wait-and-see mode ahead of the central bank meetings.”
While a weakening USD is providing some support, investors are waiting for fresh drivers and, most importantly, an expected breakout.
Ahead of the meetings, the economy showed further signs of weakness, with US consumer confidence falling to the lowest in 6 yrs. And as coronavirus tests remain in short supply in the US, a restart of all state economies is in question.
Gold futures for June delivery fell 0.1% to 1,722.20 oz at 1:30p on the COMEX in New York Tuesday.
Worldwide holdings in bullion-backed ETFs declined Monday after 25 straight days of net inflows, according to the data.
We see safe-haven demand slow as stock prices have performed quite well. And at the same time we have a very strong monetary impulse with concerns about the Fed monetizing the debt, which are driving investment demand for gold.
Silver futures also declined on the COMEX, while Platinum advanced and Palladium fell on the New York Merc.
Have a healthy week, Keep the Faith!