Gold Futures Settle Sharply Lower As Risk Sentiment Improves

Gold prices drifted lower on Tuesday as riskier assets such as equities rallied amid optimism about a potential coronavirus vaccine, and economic recovery after several countries implemented plans to further relax lockdown restrictions and reopen businesses.

The dollar too fell amid an improvement in risk sentiment. The dollar index slipped to 98.96, losing nearly 1%. It was last seen at 99.00, down 0.85% from previous close.

Gold futures for June ended down $29.90, or about 1.7%, at $1,705.60 an ounce.

Silver futures for July settled lower by $0.098 at $17.595 an ounce, while Copper futures for July ended at $2.4185 per pound, gaining $0.0320 for the session.

Stock markets across Asia and Europe closed higher and U.S. stocks moved up as well, as more countries prepare easing restrictions on social, commercial and travel activities.

The pandemic death toll approached the horrific milestone of 100,000 in the U.S. Meanwhile, photos and videos of Memorial Day weekend celebrations across the U.S. showed plenty of people going to beaches and parks.

In Paris, parks and cafe terraces have reopened, and people are reportedly turning out in large numbers to enjoy an early-morning stroll in sun in Madrid’s famous Retiro Park.

Spain and Germany too have reopened gyms and swimming pools. Many other countries, including Greece, Iceland and Italy are also reopening businesses.

Meanwhile, U.S. biotech company Novavax said Monday it started the first human study of its experimental coronavirus vaccine and that it expects initial results on safety and immune responses in July.

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