Gold drops toward $1,700 as economies show signs of restarting
LONDON: Gold fell for a third day as a drumbeat of moves toward reopening economies plus gains in stocks eroded appetite for havens, with prices weakening toward $1,700 an ounce even ahead of policy announcements from two of the world’s leading central banks.
The precious metal eased after U.S. equities hit the highest in almost seven weeks as states including Florida took steps toward easing restrictions. Italy, one of the countries hit hardest, prepared to begin reopening, although the World Health Organization has warned the coronavirus pandemic is far from over.
While bullion is still trading near the highest in more than seven years amid the outbreak, investors are questioning whether there remains much scope for further gains given the restarts. At the same time, they’re tracking the massive stimulus by governments and central banks to bolster growth, with the Federal Reserve and the European Central Bank to make policy announcements on Wednesday and Thursday.
Spot gold fell as much as 0.6% to $1,703.94 an ounce and traded at $1,705.64 at 9:23 a.m. in Singapore. Prices — which rallied to $1,747.36 on April 14, the highest since 2012 — lost a combined 1% over Monday and Friday.
In other precious metals, silver and platinum declined, while palladium advanced.