By Gina Lee

Investing.com – Gold prices in Asia were down on Tuesday morning as stock markets gained.

Prices of the yellow metal reached $1,645.3 overnight as investors reacted to the United States’ extension of COVID-19 restrictions to April 30 by seeking safe havens.

But failed to hold onto its gains from the last session and fell by 0.37% at $1,637.1 by 9:34 PM ET (2:34 GMT). Asian equities markets reported gain today as China announced a of 52 for March, defying expctations of a contraction.

“Gold is finally starting to shake its recent mantle as a risk asset and becoming more of a haven asset again, especially with the extension of national social-distancing controls through April 30,” Tai Wong, head of base and precious metals derivatives trading at BMO, told CNBC. “$1,600-$1,610 is solid technical support and has held resolutely which has also helped.”

BNP Paribas (PA:) agreed with Wong’s comments.

“The recessionary fallout of the Covid-19 outbreak on the global economy suggests investors are likely to continue to seek refuge in gold,” BNP analysts said in a note. “We expect demand for gold to remain strong, at least until such time that economic conditions stabilize and the outlook begins to improve following the raft of unprecedented stimulus measures put in place by governments and central banks alike.”