Home Alternative Investments Gold above $1,700 level on worries over new coronavirus infections

Gold above $1,700 level on worries over new coronavirus infections

by Jonathan Adams
gold price

Spot gold climbed to $1,704.26 per ounce, while U.S. gold futures eased to $1,707.70

Gold held above the key $1,700 per ounce level on Monday as a new wave of coronavirus infections in some countries kept the safe-haven metal underpinned, despite firmer equities and a stronger dollar.

Spot gold climbed 0.2% to $1,704.26 per ounce by 0100 GMT. U.S. gold futures eased 0.4% to $1,707.70.

The dollar and Asian shares gained as investors looked ahead to more countries restarting their economies, even as some reported an unwelcome pick up in new coronavirus cases.

Chinese authorities reported on Sunday what could be the beginning of a new wave of virus cases in northeast China, with one city in Jilin province being reclassified as high-risk, the top of a three-tier zoning system.

South Korea warned of a second wave of the new coronavirus on Sunday, while new infections were accelerating again in Germany just days after its leaders loosened social restrictions.

The U.S. economy lost a staggering 20.5 million jobs in April, the steepest plunge in payrolls since the Great Depression, data showed, laying bare both the economic and human tragedy wrought by the pandemic.

The head of the International Monetary Fund on Friday signalled a possible downward revision of global economic forecasts, and warned the United States and China against rekindling a trade war that could weaken recovery from the pandemic.

U.S. President Donald Trump said on Friday he was “very torn” about whether to end the so-called Phase 1 U.S.-China trade deal, just hours after top officials from both countries pledged to press ahead with implementing it despite the economic wreckage from the pandemic.

The coronavirus lockdown will not end yet, British Prime Minister Boris Johnson said on Sunday, as he outlined plans to begin slowly easing measures that have closed much of the economy for seven weeks.

German exports fell by 11.8% in March, their steepest drop since current records began in 1990, the Federal Statistics Office said.

Physical gold demand improved in top hub China last week as buyers took advantage of hefty discounts, while activity remained muted in other hubs due to lockdowns and holidays.

Speculators decreased their bullish positions in COMEX gold contracts in the week to May 5, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Palladium gained 0.7% to $1,895.21 an ounce, platinum rose 0.7% to $770.66, silver climbed 0.4% to $15.51.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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