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Gold Prices Slip As Gulf Tensions Ease

Gold prices fell slightly on Tuesday as tensions in the Middle East over the U.S.’s assassination of Iranian commander Qassem Soleimani eased.

Spot gold shed 0.35 percent to $1,556.11 after touching their highest since Jan. 8 at $1,568.35. U. S. gold futures were down 0.3 percent at $1,556.25 per ounce.

Saudi Arabia has reportedly launched the sale of U.S. dollar denominated bonds with maturities of seven, 12 and 35 years, as part of efforts to plug part of its growing budget deficit. The kingdom plans to issue around $32 billion of external debt over the course of the year.

Gold prices hit a two-week high earlier in the session after the International Monetary Fund (IMF) lowered its global growth estimate for 2020 and China reported fourth death following the outbreak of a new coronavirus.

Health authorities around the world stepped up screening and the World Health Organization called a meeting on Wednesday to consider declaring an international health emergency on fears that the disease might spread faster during the Lunar New Year holiday, the Chinese-speaking world’s busiest travel season

Markets also await developments in the World Economic Forum in Davos as well as the European Central Bank’s first policy meeting of the year this week.

Earlier today, the Bank of Japan left its key interest rate unchanged at a two-day policy review and revised up its growth forecasts, citing the effects of the fiscal stimulus.

The material has been provided by InstaForex Company – www.instaforex.com