By Barani Krishnan
Investing.com - Gold retreated further from the $1,700 highs reached in Monday's safe-haven buying as investors refocused on risk following sweeping stimulus measures proposed by the Trump Administration for various parts of the U.S. economy hurt by the novel coronavirus.
Gold futures for April delivery on New York’s COMEX settled down $15.40, or almost 1%, at $1,660.30 per ounce. In Tuesday’s late afternoon trade, April futures fell further, losing $23.15, or 1.4%, to $1,652.55 by 3:08 PM ET (19:08 GMT).
April gold briefly hit a seven-year high of $1,703.90 on Monday as turmoil across global markets from the crash in oil prices renewed the yellow metal’s charge higher after last week’s 7% rally. The yellow metal eventually settled Monday’s trade just modestly higher.
Spot gold, which tracks live trades in bullion, was down $27.50, or 1.6%, at $1,652.46. On Monday, the spot contract hit a seven-year high of $1,703.10.
“Gold prices are struggling here as investors start to scale back into their riskier bets,” said Ed Moya of online trading platform OANDA. “Gold’s outlook is still bulletproof if you can handle wild swings from a wrath of global monetary easing and fiscal stimulus will ultimately take prices toward the 2011 record high.”
The Trump administration is preparing a package of economic measures to combat the fallout from the Covid-19 outbreak that media reports said could cover relief for the shipping, airline and shale oil production industry, among others.
Bloomberg reported that Trump wants a payroll tax break through the November election so that taxes won’t go back up before voters decide whether to return him to office, according to three people familiar with the president’s remarks.
“That’s one of the things we talked about,” the president told reporters, referring to the payroll tax holiday, as he emerged from a lunch meeting with senators from his Republican party.