Gold dips as investors overlook stimulus measures in cash dash

Gold dips as investors overlook stimulus measures in cash dash

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

Bullion had a fraught start to the week as logistical disruptions caused by the coronavirus pandemic led to a divergence of prices in NY and London, with traders anxious about getting supply, although there are signs that the peak tightness may have eased for now. An issue was whether there would be enough gold in NY to deliver against futures contracts traded on the Comex.

Spot gold is expected to retest a support at $1,452, a break below which could cause a fall to $1,374, said Reuters technical analyst Wang Tao.

Other precious metals also extended gains.

Banks and traders typically ship gold around the world on commercial flights, linking the trading hubs of London and NY with vaults and refineries in Switzerland, Hong Kong and Singapore.

Gold's been in the spotlight as the pandemic draws attention to the metal's role as a haven in times of crisis, and how it's become harder to trade between global markets as flights are grounded and refineries temporarily close.

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Allowing landlords to restrict the use of common areas by tenants or guests to protect against the transmission of COVID-19. The smaller number of court-ordered evictions are up to the courts, which operate independently of government, she added.

Late on Tuesday, CME Group said it would rush the launch of a new gold futures contract under which 400-ounce bars would also be deliverable. Total deliverable stocks in Comex warehouses were about 8.7 million ounces.

"The overall concern here is how much more gold do investors need to sell to cover living expenses - it's a psychological thing where people continue to sell for cash", said Stephen Innes, chief market strategist at financial services firm AxiCorp.

US stock index futures surged more than 3%, while the dollar fell over 1% against major currencies after the Fed's latest announcement.

The recommendation comes after the price of gold fell in recent weeks despite markets around the world falling. Having been in excess of $20 an ounce on Tuesday, bid-ask spreads are now down to around $6 an ounce. Speaking of worldwide level, according to Bloomberg, The global spot price of gold was down 0.45 percent, or $ 6.71, at $ 1491.94 an ounce on Monday morning at 10.40 am. Chairman Jerome Powell will make a rare televised interview appearance Thursday.

The global spot price of silver was down by 0.34 percent or $ 0.04 to trade at $ 12.57 an ounce.

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