(Kitco News) – Gold prices are trading sharply higher in midday U.S. trading Tuesday, as the panic selling pressure seen across most markets Monday appears to be letting up–at least for now. Ironically, that’s been bullish for safe-haven gold.
The “sell what you can” attitudes experienced just recently (and which put strong selling pressure into the gold and silver markets) appear to have been replaced by “sell what you want.”
The less panic in the marketplace Tuesday is actually prompting fresh safe-haven buying in gold because traders and investors now have the increased confidence to step in and buy something, and because this global health crisis and economic crisis are by no means near being over. April gold futures were last up $41.20 an ounce at $1,527.70. May Comex silver prices were last down $0.271 at $12.535 an ounce.
Gold also saw support Tuesday the aftermath of the Federal Reserve announcing it is reopening its emergency commercial paper funding program that was used in the 2008 financial crisis. There had been rumors and reports this week that the short-term U.S. credit system was not liquid and dislocations were being experienced.
The move by the Fed also supported the U.S. stock market as prices rallied after the Fed news. A news conference by President Trump and his health team also somewhat assuaged traders and investors.
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