Gold prices retreated on Friday as investors booked profits from a 1% jump in the last session, but the metal had some support as mounting concerns over the rapid spread of coronavirus lifted expectations of rate cuts by major central banks.
Spot gold was down 0.7% at $1,630.86 U.S. per ounce. U.S. gold futures slipped 0.6% to $1,631.90 U.S. per ounce.
Experts noted that there's a lot of worry about the prospect of more stimulus measures,which could means lower interest rates, and that high prices could mean some profit-taking.
Assumptions abounded that the U.S. Federal Reserve would cut interest rates as soon as next month to cushion the economy from the virus’ impact.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Bullion has added almost 3% so far this month, its third straight monthly gain. Prices hit a seven-year high of $1,688.66 U.S. earlier this week.
Among other precious metals, palladium slipped 2.6% to $2,770.03 U.S. per ounce, and fell as much as 5% but was on track to register its most monthly gains since November 2016.
Palladium jumped to a record $2,875.50 U.S. in the previous session on a sustained supply shortfall, with the world’s
largest producer of the metal, Nornickel, projecting a global deficit of 0.9 million ounces in 2020.
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