Gold Down, Investor Retreat After FDA Approves Potential COVID-19 Treatment

imageCommodities14 minutes ago (Aug 24, 2020 12:29AM ET)

(C) Reuters.

By Gina Lee

Investing.com – Gold was down on Monday morning in Asia, continuing a second consecutive week of losses.

Gold futures were down 0.36% at $1,940 by 12:25 AM ET (5:25 AM GMT). Stocks, which usually move inversely to gold, were up in Asia on Monday. Meanwhile, the dollar was flat on Monday.

The yellow metal was boosted on Friday by a stronger dollar alongside a slew of positive U.S. data. The data included the 5.86 million reading for July’s existing home sales, and both the manufacturing and service sectors purchasing managers’ index (PMI), which remained above the 50-mark indicating expansion, beat forecasts prepared by Investing.com.

But investors retreated from the safe-haven asset after hopes were raised for a new COVID-19 treatment on Sunday. The U.S. Food and Drugs Administration (FDA) said that it had given “emergency use approval” for a new potential treatment that uses blood plasma from patients who have recovered from the virus to treat COVID-19.

Meanwhile, investors will be looking to U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium, due to open on Thursday, for further clues on the U.S. monetary policy outlook. The Fed’s monetary policy framework review, focusing on a new inflation strategy, is widely expected to be covered in Powell’s speech after the release of the minutes form the Fed’s last meeting during the previous week disappointed investors.

Gold Down, Investors Retreat After FDA Approves Potential COVID-19 Treatment

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.