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Gold Down as Investors Turn to Stocks

Published 25/09/2020, 02:39 pm
© Reuters.
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By Adam Claringbull

Investing.com – Gold was down on Friday morning in Asia as stock markets rose across the globe.

Gold futures edged down 0.11% at $1,874.90 by 12:48 PM ET (4:48 AM GMT)

Global stocks pushing upwards took attention away from the precious metal, with all major stock indices boosted. Germany’s Ifo survey rose  to 93.4 in September, it missed the 93.8 figure predicted in forecasts prepared by Investing.com, suggesting that the European powerhouse is beginning to see a path through the pandemic emerging.

Factors pushing gold in the other direction include a rapid resurgence of COVID-19 in Europe, with the U.K. and France recording their highest yet daily new cases, U.S. President Donald Trump refusing to say whether he would agree to a peaceful transition of power should he lose the upcoming election, and higher-than-expected unemployment applications in the U.S. However, none of these were sufficient to lift gold prices up against downward pressure of the burgeoning interest in stocks.

The latest U.S. non-farm payroll data is due on Oct 2, investors are looking to it to see if there has been an improvement in the U.S. economy.

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