Gold prices slipped on Monday in response to countries easing their coronavirus restrictions, spurring interest in more risk-laden equities.
According to a report by CNBC, spot gold was down 0.6% to $1,716 per ounce on Monday, while U.S. gold futures saw little change. The report claims gold’s price fall was limited by the market’s belief that more stimulus measures will be put into play by central banks around the world.
OANDA analyst Craig Erlam said,
We are starting to see a lot more talk about economies reopening and trying to get business back to normal as much as possible and that does seem to be lifting sentiment. This kind of bounce in risk appetite is potentially fuelling profit-taking in gold.
Despite the easing in restrictions, some analysts warn the economic impact of COVID-19 is far from over. Commerzbank analysts wrote in a note that the world will still be “far from any kind of normality,” following the re-opening of businesses. The note pointed to “disastrous” economic indicators “virtually everywhere” pointing to a global economic collapse.
The note continued,
To counter this, governments around the globe are likely to continue spending unparalleled sums of money – most of which will be created by the central banks.
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