2020.04.2710:34:00UTC+00Gold Prices Ease As Risk Sentiment Improves

Gold prices fell slightly on Monday as risk sentiment improved amid signs that the coronavirus outbreak is peaking and that countries around the world are beginning to ease restrictions put in place because of the pandemic.

Spot gold dropped 0.7 percent to $1,717.18 per ounce, while U.S. gold futures were marginally lower at $1,734.75.

Germany reported just 1,018 new coronavirus cases on Monday, the lowest number since the early days of the outbreak more than six weeks ago.

Italy, Spain and France all signaled tentative moves to open up their economies amid a continued slowdown in new virus cases.

With the worst hopefully behind, New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio are laying out plans for reopening in the weeks.

Italian government bond yields dropped as ratings agency S&P Global affirmed Italy's credit rating at 'BBB/A-2', while keeping the negative outlook because of the expected surge in public debt. The announcement helped calm worries about a potential junk rating for the euro zone's third largest economy.

S&P referred amongst other things to the ECB's financing backstop which keeps debt refinancing costs low and manageable.

Amid expectations for more stimulus measures, investors looked ahead to a slew of central bank meetings this week for further direction.

Earlier today, the Bank of Japan expanded monetary stimulus and pledged to buy unlimited amount of bonds to keep borrowing costs low.