By Gina Lee
Investing.com – Gold was down on Tuesday morning in Asia as it could not hold onto its gains from the previous session.
In a historic slump, WTI Futures for May delivery dropped to -$37.63 overnight, a day ahead of the contract’s expiry on Tuesday.
Gold futures gained as much as 1% in the slide’s aftermath as investors flocked to the yellow metal as Wall Street shares tumbled. But the futures were down by 0.32% at $1,705.70 by 11:49 PM ET (4:49 AM GMT) as Asian stocks also took a tumble following the news.
Although the two usually move in the opposite directions, Monday’s Reuters poll predicted that the increased demand for the yellow metal would be offset by a strengthening dollar and weak retail consumption as the COVID-19 pandemic continues to ravage global economies.
Results from a Deutsch Bank investor survey also released on Monday showed that investors were less confident of a return to business-as-usual for Europe and the United States ahead of the summer.
Bank of England deputy governor Ben Broadbent also added overnight that the U.K.’s economic recovery could be slowed down by consumer caution once the country’s lockdown is lifted.
Meanwhile, the U.S. Congress will vote on a new $450 billion package for small businesses and hospitals impacted by COVID-19 later in the day.