Gold Eases On Firmer Dollar; Recovery Worries Limit Losses

Governments and major central banks have flooded the markets with unprecedented stimulus measures to mitigate economic damage from the virus, driving gold to new highs because of its role as a hedge against inflation and currency debasement.

Market participants’ focus will now be on the European Central Bank’s policy decision on Thursday to see if policymakers add yet more stimulus.

On the trade front, President Donald Trump on Monday again raised the idea of decoupling the U.S. economy from China, suggesting the United States would not lose money if the world’s two biggest economies no longer did business.

Spot gold is poised to break a support at $1,923 per ounce and fall into $1,880-$1,906 range, said Reuters technical analyst Wang Tao.