Home 2020 Gold Sellers Opt for Bucks Due to Coronavirus

Gold Sellers Opt for Bucks Due to Coronavirus



Gold prices fell Monday as investors stockpile cash, with a rising numbers of coronavirus-led national lockdowns threatening to overshadow stimulus measures from global central banks to combat the economic damage.

Spot gold edged down 0.2% to 1,494.63 oz by 0320 GMT, after rising as much as 3.1% in the prior session on a wave of stimulus.

US gold futures climbed 0.8% at 1,496.70 oz.

The overall concern in here is how much more gold do investors need to sell to cover living expenses. it is a psychological thing where people continue to sell for cash.

Another concern is the possibility of central banks having to sell gold to buy USDs as the Buck continues to strengthen.

The USD holding near a 3-yr high Vs peer currencies as fresh decliners in global stocks and worries about tightening liquidity accelerated the flight to cash.

Asian shares sank as a rising tide of lockdowns threatened to overwhelm policymakers’ frantic efforts to cushion what is likely to be a deep global recession.

The Fed continued to roll out emergency support Friday as it enhanced efforts with other major central banks to ease a global USD-funding crunch.

Market participants are counting on further policy easing in the next few days as the Senate mulls a $1-T+ package that would include direct financial help for Americans.

Airlines cancelled more flights as Australia and New Zealand advised against non-essential domestic travel, the UAE halted flights for 2 wks, and Singapore and Taiwan banned foreign transit passengers.

Meanwhile, almost 33% of Americans were ordered to stay home to slow the spread of the disease. Italy banned internal travel as deaths there reached 5,476 and China reported 46 new cases Sunday that were mostly imported from overseas.

The global death toll from the coronavirus exceeded over 14,000 with more than 300,000 infections.

Hedge funds and money managers reduced their Bullish positions on COMEX gold contracts in the week to March 17, the US Commodity Futures Trading Commission (CFTC) said Friday.

The other precious metals, Palladium rose 0.4% at 1,648.14 oz, Platinum up 1.9% to 622.56 and silver higher by 0.3% at 12.61.

Have a healthy week, stay home!

Previous articleAll About Sleep
Next articleMonday’s World Markets Outlook: Asia and Oceania
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.