Gold costs rose on Monday as worries over a surge in COVID-19 infections globally dented optimism a couple of swift financial rebound, driving buyers towards the safe-haven metallic. Spot gold was 0.1 per cent larger at $1,772.30 per ounce by 0644 GMT (12:14 pm in India). Prices had been $6.76 shy of a close to eight-year excessive of $1,779.06 per ounce, hit final week. US gold futures rose 0.Three per cent to $1,786 per ounce.
“Certainly the safe-haven buying is coming through fairly strong, with the fresh outbreak of coronavirus in the US, in particular, really driving that investor appetite at the moment,” mentioned ANZ analyst Daniel Hynes.
California ordered some bars to shut on Sunday, following comparable strikes in Texas and Florida, as instances nationwide soar to file ranges every day. Washington state and the town of San Francisco have paused re-opening plans.
The relentless unfold of the coronavirus intensified investor fears a couple of delay in international financial restoration and weighed on threat urge for food, driving inflows into safe-haven property.
The outlook for a world financial restoration over the previous month has worsened or at finest stayed about the identical, based on a agency majority of economists in Reuters polls.
“With COVID-19 cases rising in the U.S., real rates well into negative territory and stimulus ongoing, the environment remains conducive to a higher gold price,” MKS PAMP mentioned in a word.
Reflecting elevated investor curiosity in gold, holdings of SPDR Gold Trust rose 0.Three per cent on Friday, whereas speculators elevated their bullish positions in COMEX gold and silver contracts within the week to June 23.
On the technical aspect, spot gold was poised to interrupt a resistance at $1,778 per ounce and rise to $1,789, mentioned Reuters technical analyst Wang Tao.
Elsewhere, palladium gained 0.7 per cent to $1,873.70 per ounce, whereas platinum rose 1.eight per cent to $805.57 and silver climbed 0.6 per cent to $17.85.