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Gold lost ground Tuesday, remaining under pressure as worries about the economic impact of China’s spreading coronavirus continued to ebb.
Gold for April delivery GCJ20, -1.34% on Comex fell $20.70, or 1.3%, to $1,561.70 an ounce, while March silver SIH20, -0.25% was down 4.5 cents, or nearly 0.3%, at $17.625 an ounce.
The yellow metal lost ground Monday as U.S. stocks took back a chunk of the steep selloff triggered at the end of last week by fears over the spread of the coronavirus. The rebound robbed gold of the haven appeal that had rallied the metal late last week and early Monday, when it re-approached the $1,600-an-ounce level before turning south.
Analysts said efforts by China’s central bank to stimulate the country’s economy and an upbeat reading of the January Institute for Supply Management manufacturing index for the U.S. soothed investor jitters.
“By injecting liquidity and cutting interest rates, the Chinese central bank has succeeded in calming the markets, as reflected in rising stock markets and increased risk appetite,” said Carsten Fritsch, analyst at Commerzbank, in a note. “What is more, the ISM index in the U.S. proved surprisingly positive, lending buoyancy to the U.S. dollar and likewise weighing on gold. “
U.S. benchmark stock indexes climbed in Tuesday trading, with the Dow Jones Industrial Average DJIA, +1.53% up more than 430 points, or 1.5%.
In other metals trade, April platinum PLJ20, -0.57% was off 0.6% at $965.40 an ounce, while March palladium PAH20, +2.78% rose 2.8% to $2,295.70 an ounce. March copper HGH20, +1.85% rose 1.8% to $2.552 a pound.
