Gold Falls Despite Weaker Stocks-Investors Turn to Bonds & $ COMMODITIES: Gold Falls Despite Weaker Stocks As Investors Turn to Bonds and the Dollar
08:57 AM EDT, 04/21/2020 (MT Newswires) -- Gold prices retreated early on Tuesday even as stock markets weakened, as investors pushed the U.S. dollar higher.
Gold for June delivery was last seen down US$31.50 to US$1,679.70 per ounce in Comex electronic trade.
Investors were looking to shed risk, with stock markets in Europe and Asia trading as much as 3% lower while futures point to a lower open on U.S. exchanges. While weaker markets can spur investment in gold as a safe haven, investors are moving to the U.S. dollar and bonds rather than gold as the metal is unable to sustain prices over US$1,700.
Gold "does appear to have run out of steam for now," Commerzbank analyst Carsten Fritsch said in a research note.
The U.S 10-year Treasury note was last seen yielding 0.553%, close to its record low of 0.543%, Action Economic noted. The U.S. dollar also rose, with the ICE dollar index last seen up 0.39 points to 100.35.