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Gold Prices Fall as Asian Equities Rebound; Powell’s Speech Awaited

Published 02/11/2020, 01:45 AM
Updated 02/11/2020, 01:46 AM
© Reuters.
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By Alex Ho

Investing.com - Gold prices fell on Tuesday in Asia ahead of testimony from Federal Reserve Chairman Jerome Powell.

Gold Futures for April delivery lost 0.5% to $1,571.65 by 1:40 AM ET (05:40 GMT). Asian equities were mostly higher today, putting the safe-haven metal under pressure.

The yellow metal rose in the last four days as it drew support from concerns about the coronavirus epidemic as death toll crossed 1,000 lives in China.

China today reported 108 new coronavirus deaths but the number of new cases fell. There were 2,478 new confirmed cases, down from 3,062 on the previous day, China's health authorities said.

A two-day testimony to Congress by Powell, which is expected to start today, is expected to be a major directional driver for the yellow metal later this week, as traders are looking at the question of whether Powell would give hints on possible stimulus measures to shield the U.S. economy from China’s widening coronavirus crisis.

The Fed slashed interest rates three times in 2019, by a quarter-point on each occasion, before bringing that easing cycle to a close in December.

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