Gold Firms on US Economic Woes

Gold futures contracts fell lower Monday, during the early Asian trade session. Traders are watching the U.S. dollar inch higher as traders remain hopeful that the world’s largest economy will soon reopen from their Covid-19 lockdown.

The U.S. economy has shed close to 22 million jobs since middle of March as the government has issued stay at home or shelter in place orders to over ninety (90) percent of their population. The Covid-19 is claiming more victims in the states as there are now over 40,000 deaths.

As of 12:40 am GMT, the widely traded spot gold futures contract was trading lower. This contact shed half a percent to trade at $1,675.92 per ounce. Earlier in the Asian session, the spot futures contract hit its lowest price point since April 9. This contract lost two percent on Friday.

U.S. gold futures contract, for front month delivery, was also down. This contract lost 0.7 percent to trade at $1,687.20 per ounce.

The U.S. dollar index, which measures the greenback in a basket of six other currencies, was up 0.1 percent.

Gold Traders watch Corporate Earnings and U.S. Political Drama

Financial traders are concerned about poor corporate earnings as well as weak economic data that is signaling how bad the economic damage is from the Covid-19 pandemic.

U.S. state governors sparred with President Donald Trump after the president said that states had enough coronavirus test kits. President Trump also said that they should move quickly to reopen their economies.

Trump has sparked controversy as he has urged protestors to take to the streets to “liberate” their states and force state governments to reverse stay at home orders.

Traders Digest News of further U.S. Stimulus Measures

The Democrats and the Republicans are reportedly close to an agreement that would approve extra money to help small businesses hurt by the contagion. Traders are looking for the agreement to be signed and delivered sometime on Monday despite the president’s promise to have it done on Sunday.

The United Kingdom has no plans to lift their lockdown after almost four weeks as they are “deeply worried” about the spike in deaths. This is according to a senior Member of Parliament who spoke on Sunday