Gold Drops As Stocks, Dollar, Rebound From Monday's Crash COMMODITIES: Gold Drops As Stocks, Dollar, Rebound From Monday's Crash
09:19 AM EDT, 03/10/2020 (MT Newswires) -- Gold prices dropped early on Tuesday as stock markets rebounded from a record crash and the U.S dollar rose.
Gold for April delivery was last seen down US$13.70 to US$1,662.00 per ounce in Comex electronic trade.
The drop came as stock markets recovered following Monday's crash as U.S president Donald Trump promised stimulus measures to support growth. European markets were up more than 2% while futures point to a much stronger open on U.S. markets.
Still, economic weakness remains as the coronavirus slashes demand and the shuttering of factories and businesses in China and elsewhere disrupts global supply chains.
"We do not expect the (price) weakness to last very long," Commerzbank analyst Daniel Briesemann said in a report. "The appetite of market participants for gold still seems to be considerable, as evidenced by inflows of over 47 tons into gold ETFs in the last two days of trading."
The U.S. dollar rose, making gold more expensive for international buyers. The ICE dollar index was last seen up 0.81 points to 95.71.