<p><strong>By Elena Mazneva and David Stringer</strong></p>.<p>Gold resumed losses in volatile trading across markets as investors gauged the impact of fiscal and monetary stimulus to counter the effect of the health crisis.</p>.<p>Bullion erased earlier gains following declines in U.S. and European stocks on Wednesday, as investors sold gold in a rush for cash to cover losses elsewhere. A stronger dollar and lower inflation expectations are also eroding gold’s appeal.</p>.<p>“It may still be too early to call a bottom with the highly volatile markets we have on hand,” said Jingyi Pan, a market strategist at IG Asia Pte. in Singapore. “Even as we expect gold prices to trade higher given its safe-haven appeal, in the very short term prices may continue to be whipsawed alongside the market.”</p>.<p>Spot gold was 1.6% lower at $1,503.75 an ounce at 10:39 a.m. in London, after a brief advance fueled by news on stimulus measures from the U.S. The country said it’s discussing a plan of as much as $1.2 trillion in spending, while the Federal Reserve reintroduced additional crisis-era tools to stabilize financial markets.</p>.<p>In Germany, Angela Merkel said the government will not rule out joint European Union debt issuance to help contain the impact of the coronavirus.</p>.<p>Gold has slumped about 5% this month as investors rush to raise cash to cover losses in other volatile markets. A collapse in inflation expectations, amid fears over slumping economic activity and the prospects of a global recession, has also reduced demand for the metal.</p>.<p>Other precious metals also declined, with silver’s 14-day relative strength index dropping to about 14 -- deep into oversold territory. In a normal situation, that would be a sign to some traders of a possible rebound soon.</p>.<p>However, the metal may remain under pressure, said Ole Hansen, head of commodity strategy at Saxo Bank A/S.</p>.<p>“Its record discount to gold will only start to come down when the fiscal spending impact begins to stabilize the demand outlook.”</p>.<p>Spot silver lost 1.5% to $12.4250 an ounce, while platinum fell 1% and palladium was down 3.2%.</p>.<p>China, a major consumer of palladium used in pollution-control devices, was reported to explore relaxing some emissions standards to provide relief for carmakers amid falling demand. Car sales in Europe are off to their worst start to a year since 2013 and are poised to deteriorate further.</p>
<p><strong>By Elena Mazneva and David Stringer</strong></p>.<p>Gold resumed losses in volatile trading across markets as investors gauged the impact of fiscal and monetary stimulus to counter the effect of the health crisis.</p>.<p>Bullion erased earlier gains following declines in U.S. and European stocks on Wednesday, as investors sold gold in a rush for cash to cover losses elsewhere. A stronger dollar and lower inflation expectations are also eroding gold’s appeal.</p>.<p>“It may still be too early to call a bottom with the highly volatile markets we have on hand,” said Jingyi Pan, a market strategist at IG Asia Pte. in Singapore. “Even as we expect gold prices to trade higher given its safe-haven appeal, in the very short term prices may continue to be whipsawed alongside the market.”</p>.<p>Spot gold was 1.6% lower at $1,503.75 an ounce at 10:39 a.m. in London, after a brief advance fueled by news on stimulus measures from the U.S. The country said it’s discussing a plan of as much as $1.2 trillion in spending, while the Federal Reserve reintroduced additional crisis-era tools to stabilize financial markets.</p>.<p>In Germany, Angela Merkel said the government will not rule out joint European Union debt issuance to help contain the impact of the coronavirus.</p>.<p>Gold has slumped about 5% this month as investors rush to raise cash to cover losses in other volatile markets. A collapse in inflation expectations, amid fears over slumping economic activity and the prospects of a global recession, has also reduced demand for the metal.</p>.<p>Other precious metals also declined, with silver’s 14-day relative strength index dropping to about 14 -- deep into oversold territory. In a normal situation, that would be a sign to some traders of a possible rebound soon.</p>.<p>However, the metal may remain under pressure, said Ole Hansen, head of commodity strategy at Saxo Bank A/S.</p>.<p>“Its record discount to gold will only start to come down when the fiscal spending impact begins to stabilize the demand outlook.”</p>.<p>Spot silver lost 1.5% to $12.4250 an ounce, while platinum fell 1% and palladium was down 3.2%.</p>.<p>China, a major consumer of palladium used in pollution-control devices, was reported to explore relaxing some emissions standards to provide relief for carmakers amid falling demand. Car sales in Europe are off to their worst start to a year since 2013 and are poised to deteriorate further.</p>