Gold prices fell on Wednesday amid profit taking after rallying to a more than seven-year high in the previous session on fears of a long global recession due to the coronavirus pandemic.
Spot gold dropped 0.45 percent to $1,718.91 per ounce, after having risen 1.9 percent to its highest level since Nov. 2012 at $1,746.50 on Tuesday. U.S. gold futures were down as much as 1.40 percent at $1,7494.65.
Gold consolidated gains at the top of its range as Austria, the Czech Republic and Denmark lifted some lockdown measures and New York started to show signs of the outbreak slowing down.
However, Asian and European equities fell today after the International Monetary Fund (IMF) said the global economy will likely contract by about 3 percent in 2020 amid the spread of the coronavirus, officially known as Covid-19.
As countries implement necessary quarantines and social distancing practices to contain the pandemic, the contraction of the economy is expected to be more severe than the recession of 2008 and 2009, the IMF said.
On the data front, reports on U.S. retail sales and industrial production for March could attract some attention today, although the expected sharp declines may already be priced into the markets.
Traders will also be presented with a slew of other less closely watched data, including reports on New York manufacturing activity, business inventories, and homebuilder confidence.
The Federal Reserve is scheduled to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts.