Category: Zinc Tips

Gold prices dropped on Friday in Asia as equities rebounded.

Gold Futures for April delivery on the Comex exchange slid 0.7% to $1,640.05 by 12:55 AM ET (04:55 GMT). 

Despite the losses today, gold prices still traded sharply higher this week, gaining over 8% and heading for its biggest weekly gain in over a decade as the total number of coronavirus cases across the world continued to rise. 

The U.S. has now overtaken China for the most confirmed cases worldwide, as infections in New York surged. 

Prior to the fall today, the yellow metal attracted some safe-haven demand overnight and gained about 1% after the Labor Department reported a record 3.28 million Americans filed for first-time unemployment benefits, signalling that the labor market could take a lot longer than anything afforded by the stimulus.

Separately, the Senate approved a stimulus package on Wednesday, the biggest of its kind ever. It’s expected to pass through the House and be signed into law by the end of the week.

While the official price tag on the package is $2 trillion,White House Economic Adviser Larry Kudlowsaid overnight that the stimulus could be as high as $6 trillion. 

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Oil prices rose on Friday as governments around the world pledged a huge injection of funds and other measures to limit the economic fallout from the coronavirus pandemic, despite fears the outbreak will destroy demand for oil.

Brent crude was up 22 cents, or 0.8%, at $26.56 a barrel by 0415 GMT. U.S. crude was up 42 cents, or 1.9%, at $23.02.

Both of the benchmarks are down nearly two-thirds this year and the slump in economic activity and fuel demand has forced massive retrenchment in investment by oil and other energy companies.

Oil requirements around the world may drop by 20% as 3 billion people are in lockdown, the head of the International Energy Agency said as he called on major producers like Saudi Arabia to help stabilize oil markets.

“It’s going to be a very uncertain year for us from a price point of view,” Peter Coleman, the head of Australian oil and gas developer Woodside Petroleum told investors on a conference call on Friday.

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