By Alex Ho
Investing.com - Gold prices fell on Wednesday morning in Asia as investors looked forward to more details of a plan from the administration of U.S. President Donald Trump to address the current economic difficulties.
Gold Futures for April delivery were trading at $1,657.05 by 10:40 PM ET (2:40 AM GMT), down 0.21%.
Wall Street equities markets enjoyed rebounded on Tuesday from a massive rout Monday after Trump scheduled the news conference to announce “major steps” to address the brutal selloff caused to a collapse in oil prices and persistent COVID-19 fears.
Even after souring midway through the session, most U.S. equities markets closed up almost 5%. The mid-day downturn appears to have been caused by the failure of Trump and other officials to hold a scheduled press conference to launch details of the plan. The failure to formally announce specifics of any stimulus plan kept investors on edge.
“We were promised something substantive from the Trump administration, and if it hasn’t come yet at this hour, then it looks like it is being delayed,” Michael McCarthy, chief market strategist at CMC Markets, told Reuters on Tuesday afternoon. “From a global investor’s perspective, there are still a lot of downside risks.”
Still, as details of the plan were released throughout the day, stocks rose. Gold, a safe haven asset, dropped in turn. Still, analysts expect gold to continue to be attractive.
Standard Chartered (LON:STAN) Bank’s precious metals analyst Suki Cooper expects gold to continue climbing. Cooper told Bloomberg that she expects the average price of to be $1725 through the second quarter of this year as investors continue to look for safe havens amidst the volatility that is defining equity markets.
At the same time, some believe the U.S. Federal Reserve might announce a second cut in interest rates this month.