Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Gold Prices Fall Below $1,700 as Oil Crash Raises Fear of Volatility

CommoditiesApr 21, 2020 11:52AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- Gold prices fell back below $1,700 an ounce on Tuesday as the shock of seeing oil trade below zero for the first time on Monday triggered fresh caution in global markets.

U.S. Treasury bonds were the haven of choice, the yield on the 10-year benchmark note falling to its lowest in six weeks at 0.55%. The 30-year yield fell 10 basis points to 1.14%, also a six-week low.

By 11:50 AM ET (1550 GMT), gold futures for delivery on the Comex exchange were down 1% at $1,694.80 a troy ounce, while spot gold was down 1% at $1,678.74.

Silver futures were down 4.7% at $14.87 an ounce, while platinum futures were down 6.2% at $746.70 after the oil crash and reports about slumping used car prices damped hopes for a quick recovery in auto sector demand.

Flow data continue to suggest, however, that this is likely to be a temporary setback for the yellow metal. Bloomberg reported earlier Tuesday’s that State Street’s SPDR Gold Shares (NYSE:GLD) ETF is on pace for its best month of inflows since 2016, with $4.3 billion collected so far. At the same time,  BlackRock’s iShares Gold Trust (NYSE:IAU) has taken in almost $1.3 billion in April, its best month on record, with eight trading days still to go.

Total ETF gold holdings have risen by a whopping 94.5 million ounces so far this year, according to Bloomberg, an increase of 14% since Jan. 1. Tuesday marked the 21st consecutive day of inflows.

Recommendations from Wall Street also continue to pour in. Analysts at Bank of America (NYSE:BAC) raised their gold forecast on an 18-month view to $3,000, citing the massive financial repression implicit in the fiscal and monetary programs of the developed world in the face of the Covid-19 pandemic.

“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure,” BofA analysts led by Michael Widmer wrote in a note to clients. “Financial repression is back on an extraordinary scale.”

Widmer and team expect gold to average $1,695 an ounce this year, rising to $2,063 in 2021. That’s an intriguing contrast with analysts at JPMorgan (NYSE:JPM), who expect it to peak in the second half of this year before an economic rebound teases gold back into other asset classes.

Gold Prices Fall Below $1,700 as Oil Crash Raises Fear of Volatility
 

Related Articles

Oil prices steady as U.S. storm threat wanes
Oil prices steady as U.S. storm threat wanes By Reuters - Sep 16, 2021 7

By Devika Krishna Kumar NEW YORK (Reuters) -Oil prices steadied on Thursday after hitting a multi-week high a day earlier as the threat to U.S. Gulf crude production from...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Uzaif Baba
Uzaif Baba Apr 17, 2021 9:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nice
William Gatling
William Gatling Jul 14, 2020 12:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lortering around $1800 now.
Kristof Naessens
Kristof Naessens Apr 21, 2020 1:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As long as central banks keep printing money by the trillions, gold is going to go up and you can throw all analyst predictions in the dustbin.
Pei Yi Lee
Pei Yi Lee Apr 21, 2020 1:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
??
Rony Joe
Rony Joe Apr 21, 2020 1:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes.. You are absolutely right.. that is because FED cannot print Gold out. Nice.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email