Gold falls on firm dollar, US economy re-open hopes

[BENGALURU] Gold prices fell to a more than one-week low on Monday, as the US dollar firmed and as investors remained optimistic that the US economy might reopen soon from lockdowns that were enforced to contain the novel coronavirus' spread.

Spot gold fell 0.5 per cent to US$1,675.92 per ounce by 0038 GMT, having touched its lowest since April 9 earlier in the session. The metal slumped about 2 per cent on Friday.

US gold futures slipped 0.7 per cent to US$1,687.20. The US dollar strengthened 0.1 per cent against key rivals, making gold costlier for investors holding other currencies.

Caution gripped Asian share markets on expectations of a busy week of corporate earnings reports and economic data that will drive home the damage done by the global virus lockdown.

Governors in US states hardest hit by Covid-19 sparred with President Donald Trump over his claims they have enough tests and should quickly reopen their economies, as more protests are planned over the extension of stay-at-home orders.

US Democrats and Republicans are near agreement on approving extra money to help small businesses hurt by the pandemic and could seal a deal as early as Monday, Mr Trump said, despite hopes for a deal on Sunday.

Britain is not considering lifting the lockdown imposed almost four weeks ago given the "deeply worrying" increases in the death toll, a senior minister said on Sunday.

Japan's exports fell 11.7 per cent in March from a year earlier, Ministry of Finance data showed, reflecting a sharp drop in external demand due to the pandemic.

Physical gold demand in China continued to be in the doldrums last week as the coronavirus-led restrictions stalled activity, with dealers in the top consumer offering massive discounts.

Speculators increased their bullish positions on Comex gold and cut them in silver contracts in the week to April 14, the US Commodity Futures Trading Commission (CFTC) said on Friday.

Palladium rose 2.4 per cent to US$2,207.81 per ounce, while platinum fell 0.9 per cent to US$768.12 and silver eased 0.3 per cent to US$15.08.

REUTERS