With the fresh challenges to risk-tone weighing on commodities, Gold snaps the previous two-day winning streak
while declining to $1,610, down 0.07%, amid early Friday. The recent challenges to the yellow metal are likely from the coronavirus (COVID-19) front. It’s worth mentioning that the bullion earlier seemed to be benefited from the market’s risk-on due to US President Trump’s tweet suggesting an oil production cut pact between Saudi Arabia and Russia.
Communist Party Secretary of China's Wuhan says the risk of coronavirus resurgence in the city is still high. Adding burden to the risk-tone could be the extended lockdown of Washington state until May 04, 2020. On the contrary, S&P affirmed its AA+ credit rating, with a stable outlook, for the US while also expecting the economic losses to offset in 2021.
While portraying the risk-tone the US 10-year Treasury yields drop below 0.60%, down three basis points (bps), whereas the US stock futures also mark losses of near 1.0% by the press time. Even so, stocks in Asia-Pacific are mildly positive following the recent Aussie, Japan data.