Gold T + D on the Shanghai gold exchange closed down 0.66% at 367.02 yuan per gram on Tuesday evening. Gold T + D on the Shanghai gold exchange closed down 6.35 yuan, or 1.70 percent, at 366.67 yuan per gram on Tuesday, with the highest bid at 374.20 yuan per gram and the lowest bid at 365.00 yuan per gram. International spot gold Tuesday morning Asian market opened at 1679.98 yuan/oz, the lowest touched 1641.80 dollars/oz, the highest rose to 1680.31 dollars/oz, closed at 1648.94 dollars/oz, down 30.95 dollars or 1.84%.
Shanghai gold exchange silver T + D closed up 0.67 percent at 4,049.00 yuan per kilogram late Tuesday. Shanghai gold exchange silver T + D closed up 8 yuan, or 0.20 percent, at 4,066.00 yuan per kg on Tuesday, with the highest bid at 4,077 yuan per kg and the lowest at 3,963 yuan per kg. International spot silver started at $17.00 an ounce in Asian trading on Tuesday morning, dipped as low as $16.78 an ounce, rose as high as $17.19 an ounce, and closed at $16.87, down 13 cents or 0.76%.
Gold fell more than 1 percent on Tuesday after breaching the $1,700 an ounce limit in the previous session. Signs that global policy will be eased to ease the economic impact of the new pneumonia outbreak have eased some investor concerns.
COMEX April gold futures ended down $15.4, or 0.92 percent, at $1,660.30 an ounce.
“People are adjusting their portfolios… We expect to hear more dovish comments from central Banks around the world and some easing.”
On Monday, gold rose as much as 1.7% to $1,702.56 an ounce, its highest level since December 2012. The move followed a sharp drop in global stock markets over the potential economic impact of the outbreak and a drop in crude prices triggered by the oil price war.
U.S. stocks rose strongly on the day as signs of a coordinated easing of policy to avoid a global recession soothed traders.
US President Donald Trump has vowed to take “significant” measures to boost the economy. Japan has unveiled a second set of measures worth $4 billion to deal with the aftermath of the outbreak.
US President Donald Trump proposed a 0 percent payroll tax rate during a meeting with Republican lawmakers on Capitol Hill on Tuesday that would last through the rest of the year, a White House official told CNBC on Tuesday. The official, who spoke on condition of anonymity, said the issue of making the payroll-tax rollback permanent was also discussed.
The fed announced an emergency rate cut last week and is expected to cut again at its next meeting on March 18.
The ECB is under pressure to help boost growth. The meeting will be held on Thursday.
Us Treasury yields rose from historic lows and the dollar rebounded after a sharp fall.
The dollar and U.S. bond yields rose sharply on Tuesday, raising expectations that governments will take stimulus measures to combat the impact of the outbreak. The currencies of oil exporters, including the Norwegian krone and Canadian dollar, outperformed the other g-10 currencies as oil prices rebounded strongly after their biggest drop in decades.
Ben Udy, the macroeconomist at capital economics, said: “After Monday’s rally in the yen and treasuries, the market clearly stopped and repriced risk. I wouldn’t read the current reversal too much as a positive sign that the market is back to normal.”
However, the specter of coronavirus remains in the background, with more than 114,300 people infected worldwide.
“Tuesday’s rally is likely to be a ‘dead cat rally’ after the market’s sharp decline, with prices continuing to fall,” Jim Wyckoff, senior analyst at Kitco Metals, said in a report.
Holdings of the SPDR Gold Trust, the world’s largest Gold exchange-traded fund, rose to 30.99m ounces, the highest since October 2016.