Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

PRECIOUS-Gold jumps 1% as oil price slump drags down share markets

Published 20/04/2020, 16:38
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-

(Recasts, adds comments, updates prices)
* U.S. crude futures turn negative for first time
* Gold to consolidate below recent highs in 2020, 2021 -poll
* Even a coronavirus crisis can't puncture palladium prices
-poll
* Interactive graphic tracking global spread: open https://tmsnrt.rs/3aIRuz7
in an external browser

By Eileen Soreng
April 20 (Reuters) - Gold climbed as much as 1% on Monday
after earlier hitting a more-than one-week low, with the
collapse of U.S. crude oil prices to a record low hitting risk
assets and driving investors to the safety of bullion.
Spot gold XAU= gained 0.5% to $1,692.26 per ounce at 2:10
p.m. EDT (1610 GMT), after earlier hitting the lowest level
since April 9, at $1,670.55. U.S. gold futures GCcv1 settled
up 0.7%, at 1,711.20.
"Gold is rising on bets that the unprecedented global
monetary stimulus (measures) will only rise and after the
historic turmoil in the oil industry reminded everyone that we
are far away from seeing a return of normal global economic
activity," said Edward Moya, a senior market analyst at broker
OANDA.
Global equity markets took a hit from plunging U.S. crude
oil prices, which have slumped more than 100% to turn negative
for the first time ever. MKTS/GLOB .N
Oil has been pressured for weeks, with the coronavirus
outbreak hammering demand. Even though Saudi Arabia and its
allies agreed, more than a week ago, to cut supply by 9.7
million barrels per day, that will not quickly reduce the global
glut. O/R

"It is hard to imagine that risky assets will continue to
shine this week and that should provide strong underlying
support for gold. ... If gold continues to hold the $1,700 level
by the end of trade today, the eventual test of $1,800 could
happen this week," Moya said.
The markets are much less confident about Europe and the
United States getting back to business ahead of the summer, a
Deutsche Bank investor survey showed on Monday, even as some
countries begin gradually reopening their economies.
"There will be a positive view of the economy going forward
as things open up and given all the massive amounts of monetary
and fiscal stimulus, the market will turn to gold as a protector
against inflation," said Bart Melek, head of commodity
strategies at TD Securities.
However, a Reuters poll on Monday showed gold prices are
likely to consolidate below recent highs during 2020 and 2021 on
dollar strength and weak retail consumption. PREC/POLL
Analysts and traders in a Reuters poll forecast palladium
will remain undersupplied even as the coronavirus outbreak
hammers automakers, reducing demand. Palladium XPD= rose 0.1% to $2,158.34 per ounce, platinum
XPT= dipped 0.2% to $773.88, while silver XAG= was up 1%
at$15.28 per ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC: Spot gold versus U.S. crude oil prices https://reut.rs/2Kjkwt1
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: 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
© 2007-2024 - Fusion Media Limited. All Rights Reserved.