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Gold Recovers After Earlier Losses, Other Precious Metals Mixed

April 24, 2020 at 10:07 by Vladimir Vyun

Prices for gold dipped earlier today as the improving market sentiment limited demand for the metal in its role of a safe haven. Markets were calming down after the shock caused by the drop in prices for North American crude oil below $0 at the start of the week. WTI crude jumped above $17 per barrel earlier today, though by now both WTI and Brent crude have erased gains and are trading below the opening. Markets were also happy to hear that the US Congress approved a $500 billion stimulus package.

But analysts were advising to consider any dip in gold prices as a buying opportunity. And it looks like traders indeed used that strategy as currently bullion is trading firmly above the opening level, hanging near $1,750 after slipping to $1,721 earlier today. Fundamentals still look bullish for the yellow metal. The coronavirus pandemic continues to rage across the world, even though some countries are easing lockdown measures. The latest economic data from various parts of the world looks disastrous for the most part, and economists predict an economic crisis that might rival the Great Depression of the 1930s. In such times, investors tend to seek safety, and gold can profit from that. The danger for the metal is that speculators can choose another safe option to park funds, like the US dollar. Indeed, market analysts noted that lately traders often prefer the greenback over bullion as a refuge.

Futures for delivery of WTI crude oil in June rallied $6.7 (0.38%) to $1,752.1 per troy ounce as of 10:05 GMT on COMEX today. July silver was almost unchanged at $15.53 per ounce. At the same time, spot price for platinum fell by $0.91 (0.12%) to $765.41 per ounce but palladium jumped by $60.96 (3.08%) to $2,037.95 per ounce.

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