Gold Prices Fall as Equities Rebound, But Virus Concerns Remain

Gold prices traded lower on Wednesday in Asia as equities rebounded after data showed the number of new coronavirus cases fell today, but uncertainty over the economic impact of the outbreak remains.

Gold futures for April delivery inched down 0.1% to $1,568.75 by 1:25 AM ET (05:25 GMT).

Asian stocks rebounded today, as China reported the lowest daily number of new coronavirus cases since January today.

“Gold is consolidating as the current virus scare is evaporating,” Stephen Innes, chief market strategist at AxiCorp, said.

In the U.S., Federal Reserve Chairman Jerome Powell said overnight in his semiannual testimony to Congress that the Fed was closely monitoring the emergence of the pandemic and its impact on China and the world, but stopped short of saying the disease had changed the central bank baseline outlook for the U.S. economy.

“We have to resist the temptation to speculate on this and so we’ll be watching that carefully again, and the question we’ll be asking is ‘will these be persistent effects that could lead to a material assessment’?” he said. “I think it’s just too early to say.”/ 

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