Gold prices fell on Wednesday, extending losses to a fourth straight session, as equities moved higher on improved risk sentiment after several places in Europe and some U.S. states relaxed shutdown restrictions.
Claims by Gilead Sciences that the results of its study showed improvement in patients taking its remdesivir to treat the coronavirus infection.
The National Institute of Allergy and Infectious Diseases has said that a study of Gilead’s remdesivir drug met its primary endpoint, lifting expectations for a potential coronavirus treatment.
Weak GDP and pending home sales data limited gold’s decline.
Gold futures for June ended down $8.80, or about 0.5%, at $1,713.40 an ounce.
After the Federal Reserve left its benchmark rate unchanged at 0-0.25%, gold futures edged up a bit, but retreated subsequently.
Silver futures for July ended down $0.013 at $15.315 an ounce, while Copper futures for July settled at $2.3705 per pound, gaining $0.0250 for the session.
U.S. economic activity saw a substantial contraction in the first quarter of 2020, according to a report released by the Commerce Department today.
The report said U.S. real gross domestic product decreased at an annual rate of 4.8% in the first quarter following the 2.1% jump in the fourth quarter of 2019.
The decrease in real GDP in the first quarter reflected negative contributions from consumer spending, non-residential fixed investment, exports, and private inventory investment.
A report released by National Association of Realtors on Wednesday showed a bigger than expected nosedive in U.S. pending home sales in the month of March.
NAR said its pending home sales index plunged by 20.8% to 88.2 in March after jumping by 2.3% to 111.4 in February. Economists had expected the index to tumbled by 10.0.
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