2020.05.0610:53:00UTC+00Gold Prices Slip On Hopes Of Economic Revival

Gold prices fell slightly on Wednesday amid hopes for economic recovery as several countries around the world seek ways to reopen their economies and ease lockdown restrictions.

Spot gold slipped 0.25 percent to $1,706.75 per ounce, while U.S. gold futures were down 0.2 percent at $1,707.

Despite growing evidence that the coronavirus pandemic is still raging, U.S. President Donald Trump said the coronavirus task force would be shut down in the coming weeks and replaced with an unspecified new advisory body that would focus on restarting the economy.

Trump said he wants the U.S. economy to reopen but acknowledged some people will be "badly affected" as curbs are eased.

Underscoring the deepening economic impact of Covid-19, a report showed on Tuesday that the U.S. service sector shrank for the first time in a decade last month.

Atlanta's Fed president Raphael Bostic said the pace and shape of the U.S. economic recovery when the novel coronavirus outbreak abates is still highly uncertain and will vary across the country.

Separately, Chicago Federal Reserve President Charles Evans warned that the decision to reopen the economy has high risks and policymakers will have a better idea of the outlook by the summer.