Crude oil prices drop, COVID-19 cases hit 38 million – Nairametrics

Crude oil prices drop, COVID-19 cases hit 38 million – Nairametrics

Gold prices dropped lower as the U.S dollar regained momentum on Tuesday morning at London’s trading session.

A rapid rise in U.S tech stocks also saw gold losing its shine, as investors increase their buying pressures on riskier assets.

At the time of writing, Gold futures were down by 0.40% to trade at $1,921.15.

READ: Oil prices drop, storm departs Gulf of Mexico

What you should know

The reason gold prices are dropping is hereby explained;

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Tech stocks, particularly Apple and Amazon, got the attention of global investors as their impressive fundamentals kept safe-haven assets like gold at bay.

READ: Days of crypto criminals numbered

In addition, gold traders are factoring a likely win by Democrat Joe Biden in the November’s U.S. presidential elections, which might lead to a much larger stimulus package than currently obtainable by President Trump.


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Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, spoke on key macros weighing down on the precious metal

READ: Apple’s market value cross $ 2 trillion

After gold broke $1,920 last week, the market is likely priced higher this week, with the $1,960-1,980 range in focus. The path of least resistance is to the upside.

“News flow of late has been stimulus-on/stimulus-off and current optimism over more fiscal aid has pushed stock markets and the precious metals complex higher.

READ: Facebook, Microsoft, Amazon shares drop, top U.S official orders lockdown

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“Gold’s longer-term outlook remains bullish given the rising COVID-19 pandemic, ongoing US-China tensions, and an eventual large-scale fiscal deal expected.”

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Gold’s uptrend has stalled as the US dollar (outside of the British Pound) struggled for direction, after the People’s Bank of China (PBoC) interventions.

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