Gold Prices Down as Russia Halts Bullion Purchases
Investing.com
Published Mar 31, 2020 10:20PM ET
Updated Mar 31, 2020 10:32PM ET
By Gina Lee
Investing.com - Gold prices were down in Asia on Wednesday morning, extending yesterday’s losses amid speculations that Russia might move from big buyer to possible seller of bullion.
Gold futures were down 0.13% to $1,594.45 by 09:40 PM ET (2:40 AM GMT), but the losses were limited as investors remained cautious amid turbulent economic times.
Reports that Russia, the world’s largest purchaser of bullion, decided to suspend gold purchases starting today were cited as a headwind for the yellow metal.
Gold prices have been under pressure in recent weeks even as the coronavirus outbreak continued to worsen, as investors dumped their holdings in the yellow metal to raise cash to cover trade margins and losses in stocks and elsewhere.
“Gold has acted more like a risk asset than safe-haven,” said Barani Krishnan, commodity analyst at Investing.com.
Get The News You Want
“A sense of caution still lingers in the air which is stimulating appetite for the dollar for investors,” FXTM analyst Lukman Otunuga.Otunuga told CNBC in an interview, noting that a stronger dollar could put pressure on gold prices.
“Global sentiment remains shaky despite central banks and governments standing together in the fight against COVID-19, with fears revolving around a global recession should send investors rushing towards gold, especially if cracks start showing in the largest economy in the world,” he added.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.