Gold prices fell Thursday morning in Asia after the U.S. Senate reached a deal on its massive COVID-19 relief package. 

Gold Futures could not hold onto initial gains and fell 0.2% to $1,629.80 by 9:24 PM ET (1:24 GMT).  

Senators in the U.S. announced overnight that they had reached a deal for a $2 trillion package and were close to a vote after the text of the bill is finalized. 

Equities markets in Asia also had mixed reactions to the news with the continuous spread of COVID-19 prompting caution among investors. The World Health Organisation said the number of global cases topped 400,000 as of March 25. 

“The big downside risk (in gold) remains the potential for those sharp sell-offs in equity markets to be repeated,” Craig Erlam, an analyst at Oanda, said in a note.  

But others sounded a more optimistic note for the yellow metal. 

“We still see a favorable backdrop for gold as the economic fallout from the corona crisis should strengthen safe-haven demand,” Julius Baer analyst Carsten Menke told CNBC. 

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