By Gina Lee
Investing.com – Gold was down on Thursday morning in Asia as stocks rallied on the back of an increase in oil prices and expectations of more economic stimuli to ease the pain of the COVID-19 pandemic.
Gold futures were down by 0.30% at $1,733 by 11:02 PM ET (4:02 AM GMT) as investors retreated from gold, viewed as a safe haven.
The U.S. House is expected to pass a $484 billion stimulus package later in the day.
Gold fell to near two-week low of $1,659.68 per ounce on Tuesday, a day after oil futures fell into negative territory for the first time ever. On Wednesday, however, oil rose as much as 1.9%.
A wider market sell-off triggered by oil’s massive Monday losses led to a dash for cash, with investors selling precious metals to cover losses.
Investors remained optimistic for gold’s prospects, even hoping to see June futures climb to $1,800.
“Technically, the gold bulls have the firm overall near-term technical advantage amid price uptrends in place on the daily, weekly and monthly charts,” Jim Wyckoff, Kitco Metals senior analyst, told CNBC.
“Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,800.”
Gold Down as Investors Retreat Following Stock Rally
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