Coronavirus Crisis: Gold Rate Falls As Lockdown Easing Plans Lift Risk Appetite

Gold fell on Tuesday as risk appetite was boosted by plans of some countries to ease coronavirus curbs in a phased manner, but prices held above the key $1,700 per ounce level amid hopes for more stimulus to cushion the fallout from the pandemic.

Spot gold eased 0.7 per cent to $1,702.09 per ounce by 0139 GMT (7:09 am in India). US gold futures fell 0.3 per cent to $1,719.20 per ounce.

Asian stocks were set for gains after a strong Wall Street session as easing lockdown restrictions by some countries and US states buoyed sentiment, despite another decline in oil prices.

Countries from Italy to New Zealand have announced the easing of coronavirus lockdowns but British Prime Minister Boris Johnson said it was too early to relax restrictions there.

More US states with fewer cases eased restrictions aimed at controlling the spread of the virus that have led to a record 26.5 million Americans filing for unemployment benefits since mid-March.

Japan's March jobless rate rose to its highest in a year, while job availability slipped to a more than three-year low, official data showed, as the coronavirus outbreak and containment measures caused the nation's job market to ease.

While investors awaited the European central bank's next move, the Bank of Japan (BoJ) expanded monetary stimulus on Monday and pledged to buy an unlimited amount of bonds to keep borrowing costs low.

Gold tends to benefit from widespread stimulus measures as it is often seen as a hedge against inflation and currency debasement.

China's net gold imports via Hong Kong in March nearly trebled from the previous month as the country began gradually easing coronavirus restrictions, but imports were still down 63 per cent from last year as the pandemic choked demand, data showed.

Gold loves a crisis, the old adage goes. And with prices up 13 per cent this year to their highest since 2012 and many predicting further gains as investors search for safe places to put their money, it looks true for the coronavirus crisis so far.

Palladium rose 0.6 per cent to $1,937.16 an ounce, platinum was little changed at $758.08 per ounce and silver slipped 1.6 per cent to $15.03 per ounce.