Gold futures lost some ground Tuesday as global equities rallied in response to easing business lockdowns as the pandemic recedes and encouraging reports of progress toward a COVID-19 vaccine, dulling the yellow metal’s haven appeal.
Gold for June delivery
GCM20,
on Comex fell $10.60, or 0.6%, to $1,724.90 an ounce, while July silver
SIN20,
was up 9.7 cents, or 0.5%, at $17.79 an ounce.
Gold is trading “in a scenario where investors are looking for fresh stimuli to move markets. The risk on approach seen on stocks in the last few days pulled down the price,” said Carlo Alberto De Casa, chief analyst at ActivTrades, in a note.
“Only a clear recovery of $1,750 would open space for further rallies, while a decline below $1,725 would increase the likelihood of another test of $1,700 and potentially down to $1,671-$1,675, where there is a strong static support,” he said.
Analysts said some underlying support comes from rising U.S.-China tensions.
Beijing on Monday denounced a U.S. move to expand a so-called entity list of Chinese companies which are restricted from doing business with U.S. firms for alleged human rights abuses in the Xinjian Uighur Autonomous region. That comes after White House national security adviser Robert O’Brien warned Sunday that the U.S. is likely to sanction China if it goes ahead with plans for new national security laws in Hong Kong, where protests have reignited.
Source : MTV
