Markets > Commodities

Gold futures see sharp downside correction

Xinhua News,CHICAGO
2020-02-26 04:05

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CHICAGO, Feb. 25 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange gave up almost all gains from the previous session in a sharp downside correction on Tuesday.

The most active gold contract for April delivery fell 26.60 U.S. dollars, or 1.59 percent, to settle at 1,650.00 dollars per ounce.

Gold futures had gained more than 3 percent in the past two consecutive sessions as investors rushed to safe-haven assets, as the Dow Jones Industrial Average lost more than 1,000 points on Monday alone.

Growing concerns over coronavirus-related global economic slowdown continued to pressure U.S. equities, with the Dow falling more than 500 points further prior to gold's settlement on Tuesday.

However, profit-taking reversed the upturn of gold futures, at least for now, said analysts.

In an apparent effort to soothe the stock market, U.S. National Economic Council Director Larry Kudlow said Tuesday that the coronavirus outbreak is a "human tragedy," not likely to be an "economic tragedy."

Yet his comments failed to curb the sharp fall of U.S. stock benchmarks.

If equities continue to plunge, safe-haven assets, such like gold, still have the potential to gain in the long run, said market watchers.
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