WASHINGTON (dpa-AFX) - Gold prices drifted lower on Tuesday, after moving higher in the previous two sessions, as riskier assets such as equities climbed up amid reports several countries across the world have eased lockdown restrictions.
The dollar held in positive territory, although its movements were somewhat choppy. The dollar index rose to 99.97 before it pared gains and very nearly slipped into the red. It recovered subsequently and was last seen at 99.68, up by about 0.2%.
Gold futures for June ended down $2.70, or about 0.2%, at $1,710.60 an ounce
Italy finally eased lockdown restrictions with strict guidelines after two months. The country has allowed 4.5 million people to return to work but not without masks and gloves. Restaurants, parks and public transports have been re-opened too.
Spain continues to be in a state of lockdown, but easing of restrictions have been announced across the country.
In the U.S., California will be slowly reopening businesses. Gavin Newsom, the governor of the state said on Monday that some retailers could open this Friday for curbside pickup. California, incidentally, was among the states that had implemented shutdown to slow the spread of the virus.
Andrew Cuomo of New York has outlined a phased reopening in the U.S. state hardest hit by the Covid-19 pandemic.
Optimism about treatment for the virus has risen on reports researchers in New York University and the University of Maryland School of Medicines have started injecting people with vaccines from Pfizer and BioNTech.
Meanwhile, in economic news, a report released by the Commerce Department showed U.S. trade deficit widened to $44.4 billion in March from $39.8 billion in February. The trade deficit was expected to widen to $44.0 billion.
A report released by the Institute for Supply Management on Tuesday showed U.S. service sector activity contracted for the first time since December of 2009 in the month of April.
The ISM said its non-manufacturing index tumbled to 41.8 in April from 52.5 in March, with a reading below 50 indicating a contraction in service sector activity.
The non-manufacturing index slumped to its lowest level since hitting 40.1 in March of 2009 but still came in above economist estimates for a reading of 36.8.
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