Early on Tuesday, gold prices have slid lower after touching four-week highs over a strengthening in the US dollar even as the market sentiment improves on news about a slowdown in the number of coronavirus cases and death toll across the world. At the time of writing, GOLD is trading at a little above $1,660.
In the previous session, gold had gained around 2.8% of its value as markets focused on last week’s disappointing NFP and jobless claims data from the US. However, with the US dollar trading close to two-week highs and stock markets rallying on a slowdown in the death toll from the virus globally, the yellow metal has lost some of its safe haven appeal momentarily.
Amid escalating worries of an impending economic recession, several governments and central banks are ramping up their stimulus measures. The Japanese government has announced stimulus efforts worth around 20% of the country’s GDP while the US Fed has rolled out more support to promote lending to small businesses.
Gold prices have also weakened after recent data revealed that the world’s second largest consumer of the precious metal, India, imported 73% less gold during March 2020 YoY. Lockdown measures and escalating prices kept retail consumers away, causing India’s gold imports to fall to the lowest level seen in over six years.