Gold prices in Asia were down on Tuesday morning as stock markets gained.
Prices of the yellow metal reached $1,645.3 overnight as investors reacted to the United States’ extension of COVID-19 restrictions to April 30 by seeking safe havens.
But Gold futures failed to hold onto its gains from the last session and fell by 0.37% at $1,637.1 by 9:34 PM ET (2:34 GMT). Asian equities markets reported gain today as China announced a Manufacturing Purchasing Managers’ Index of 52 for March, defying expctations of a contraction.
“Gold is finally starting to shake its recent mantle as a risk asset and becoming more of a haven asset again, especially with the extension of national social-distancing controls through April 30,” Tai Wong, head of base and precious metals derivatives trading at BMO, told CNBC. “$1,600-$1,610 is solid technical support and has held resolutely which has also helped.”