The price of Gold is constantly rolling downwards since the two-day stock market rally in the US stock market. The yellow metal is truly feeling the heat of the moment and the pressure of the stock rally. As scenes indicate a market bottom for the stocks, it might not be a very encouraging sign for the price of gold. The rally will bring forth people to invest in the stock market and in this move the money will be taken out of the safe haven “Gold”.
However, though there is a rally in the stock market, there is a lot remaining to happen at the stocks as of yet. This is one precaution that many investors will probably follow and hence the dip in the prices of gold will come to a halt soon enough.
The surge in the stock market is due to the fact that Congress has agreed to a $2 trillion financial package for the state. This fiscal stimulus will help the market regain momentum and also those businesses that have suffered immense losses due to the recent national emergency. April gold futures were down by $26.00 to end the day at $1635.00/ ounce.
Metal traders in the US were buzzing with the wild swing of the indices and they expect the fall to pertain for the coming few days. Though April Comex Gold futures pointed towards a high on Tuesday morning, the prices of gold eventually got slashed by the time the closing bell rang in the Wall Street. As the UK government has announced a complete lockdown, there were many Gold traders who were working from home and this further initiated a confusion regarding the prices in London. Prior to this Tuesday, the London spot gold market has been running efficiently but now that the entire financial market is volatile, such dips and peaks are expected in the coming days too.
Other market news includes the US 10-year treasury that is trending with 0.85% on Wednesday and the Nymex Crude oil prices were slightly up at around $24.50/barrel. The price of Silver for May was hitting an 11-year low previous week but now it is somewhat in a much-stabilized condition than before. The drop in the prices of such precious metals is only because of the fact that people are taking out the money to invest in the market that is booming once again. The only note to investors would be to take calculated risks rather than blind ones because the market that is stepping up the gas now will fall once again. Such predictions are rife because the truth is that the devastating impact of Coronavirus is yet to strike the market and it will be soon revealed with a disclosure of the economic report for this quarter of the year.