Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk

Gold futures are trading higher shortly before the regular session opening after rebounding from earlier losses. The fundamental picture today is mixed so the price action is likely related to a technical spot on the daily chart.

Fundamentally, stock market weakness and lower Treasury yields are underpinning prices, but a stronger U.S. Dollar is helping to cap gains. The weaker stock market could actually be limiting gains also if it is encouraging margin-call selling. We just won’t know until we see the whole picture after the U.S. stock market opens at 12:30 GMT.

Know where Gold is headed? Take advantage now with 

75% of retail CFD investors lose money

At 10:49 GMT, June Comex gold futures are trading $1607.50, up $10.90 or +0.68%. Earlier in the session, the market hit a low of $1576.00.

Foreign Central Banks Getting More Access to Dollars

The U.S. Federal Reserve on Tuesday broadened the ability of dozens of foreign central banks to access U.S. Dollars during the coronavirus crisis by allowing them to exchange their holdings of U.S. Treasury securities for overnight dollar loans.

The new program “should help support the smooth functioning of the U.S. Treasury market by providing an alternative temporary source of U.S. Dollars other than sales of securities in the open market,” the U.S. central bank said, in effect giving central banks with less widely traded currencies or more volatile exchange grates a way to access cash from the Fed.

The move could be particularly important in coming weeks as measures to control the spread of the virus shuts down commerce and potentially leaves companies and countries that do business or borrow in the U.S. currency struggling to stay afloat.

The dollar weakened after the Fed announcement, with more supply of the U.S. currency seen diminishing its value.


Supply Limited

Limiting physical gold’s supply, three of the world’s largest gold refineries said they had suspended production in Switzerland for at least a week after local authorities ordered the closure of non-essential industry.

Russia Stops Buying Gold

In a sign that it may be running out of cash due to the extremely low crude oil prices, Russia’s central bank announced on Monday that it would stop buying gold starting April 1, but didn’t explain the move. Analysts say Russia already has a lot of gold stashed in reserves and likely doesn’t need more.

Forbes said with gold prices near a seven-year high and international investors clamoring for a safe haven, Russian dealers are probably eager to sell. Bullion has become an extremely popular investment in recent weeks as the coronavirus sows fear through financial markets, but some dealers are having a hard time sourcing gold bars.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.