Gold Prices Fall on Profit Taking
Investing.com
Published Feb 26, 2020 01:56AM ET
By Alex Ho
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Investing.com - Gold prices fell and snapped its 10-day rally on Wednesday in Asia as traders book profits even as global equities tanked due to coronavirus concerns.
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Gold Futures for April delivery fell 0.2% to $1,646.75 by 1:45 AM ET (05:45 GMT).
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Analysts attributed the decline in gold prices to profit taking, after the yellow metal hit a more-than seven-year high this week amid safe-haven demand as markets feared the coronavirus outbreak would rattle global markets.
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"The rapid spread of coronavirus outside China and its possible negative global economic impact supports gold’s haven demand,” said Hareesh V, head of commodity at Geojit Financial Services, in a Live Mint report.
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“Meanwhile, policy easing measures from various central banks to shore up the economy and moderate physical market activities are likely to limit major upside.”
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TD Securities also noted that longs in the yellow metal had entered new territory of “dry-powder positioning”, which it said was “off the charts” and could trigger a market reversal.
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Global equities slumped after U.S. health officials on Tuesday warned that they expect the epidemic to spread in the US.The U.S. Centers for Disease Control and Prevention said a spread of Covid-19 at home was "inevitable" and warned Americans to prepare for disruptions in their daily lives.
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Written By: Investing.com
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