Gold Prices Fall as Demand for Safe Haven Evaporates

Wed 03 Jun 2020 | 08:04 PM

Taarek Refaat

Global gold prices fell during trading on Wednesday as low demand for safe haven and the continued recovery of risk appetite among investors as well as easing restrictions imposed to tackle the spread of the novel pandemic pushed some cash toward speculation.

The price of gold futures contracts for August delivery fell 0.58% to $ 1724.00 an ounce, and the spot delivery price fell by 0.3% to $ 1721.86 an ounce.

Since May, many countries started to ease restrictions imposed on economic activity and the movement of transport and travel in preparation for the return to normal life, which helped support the path of recovery of stock markets over the past weeks, recording the highest level in about 3 months.

Investors are optimistic about the recent economic data that showed the start of recovery of industrial and service sector in some major economies in conjunction with easing the restrictions of the coronavirus.

Data released today showed the growth of the services sector in China, the second largest economy in, along with a recovery in service and industrial activities in the European single market "EuroZone".

Meantime, Ehab Wasef, deputy head of the gold pision at the Cairo Chamber of Commerce said that prices recorded a decline of EGP 2 today indicating that gold is still near its highest levels, against the backdrop of the high price of the dollar in the Egyptian market, surpassing EGP 16 pounds in major banks some banks.