Gold Prices Ease On Stimulus Bets

Gold Prices Ease On Stimulus Bets

Gold prices fell slightly on Monday amid increased risk appetite as more European nations including Spain, Italy, Germany and Greece moved to ease their lockdowns and investors eyed the potential for more stimulus measures.

Spot gold eased 0.3 percent to $1,730.22 per ounce, while U.S. gold futures were down 0.35 percent at $1,729.95.

Heightened tensions between the United States and China over a new Hong Kong security law helped to limit the downside to some extent.

Italy’s hard-hit northern Lombardy region, center of the country’s outbreak, for the first time Sunday reported no fatalities.

Spain is also easing some lockdown measures in Madrid and Barcelona, while Greece, Germany and the Czech Republic are preparing to allow bars and restaurants to begin serving again.

Primary schools in parts of England are set to reopen from Jun 1. Domestic air travel resumed across India despite increasing number of coronavirus cases.

Japan has lifted a state of emergency for Tokyo and four remaining areas as the country managed to get the coronavirus infection under control in just one and a half months.

The Nikkei newspaper reported the government is finalizing a plan for new stimulus worth almost $1 trillion to help companies ride out the coronavirus pandemic.

Trade tensions remained in focus as Beijing’s move to impose security laws on Hong Kong has heightened concerns about the future stability of the city and global trade prospects.

Hong Kong residents defied social distancing rules and protested on streets while the U.S. Commerce Department responded by adding 33 Chinese companies and other institutions to a blacklist for human rights violations and to address U.S. national security concerns.

Taiwan offered help for pro-democracy protesters who seek asylum on the island.