Gold declines despite decreased risk sentiment

Gold furthered losses on Monday morning in Asia despite decreased risk sentiment over the weekend

Gold Futures fell by 0.42% to $1,691.70 per ounce at 9:46 PM ET (2:46 AM GMT). Asian stocks also fell before China’s release of the loan prime rate which is expected later in the day.

Gold prices and the stock market are often observed to move in opposite directions.

Gold prices fell back by nearly 2% in the previous session following U.S. President Donald Trump’s announcement of guidelines to re-open the country’s economy. On the same day, U.S. biotech firm Gilead Sciences reported on the efficiency of an experimental drug that could be a potential treatment for COVID-19 patients.

Some analysts expressed optimism that gold would remain its safe haven status amid the economic turmoil caused by the COVID-19 pandemic.    

Senior market analyst at OANDA, Edward Moya said that the yellow metal will be boosted by the “boatload” of fiscal stimulus in the future as long as it remained in its key $1,650 level.