Gold hits one-month peak as rising coronavirus fears boost demand

Gold jumped to its highest in additional than a month on Monday as traders sought the safe-haven steel after surging coronavirus instances intensified issues over a delay in international financial restoration.

Spot gold was up 0.5% at $1,750.91 per ounce by 0437 GMT after hitting its highest since May 18. US gold futures rose 0.8% to $1,766.90.

“General risk aversion is helping the market, we are seeing pressure on growth exposed currencies and on share markets. Overall, there are concerns about increasing infection rates,” stated Michael McCarthy, chief strategist at CMC Markets.

“The market is concerned about the outlook for growth and that of course is supportive for gold.”

The World Health Organization reported a document improve in international coronavirus instances on Sunday.

Rising infections within the United States and elsewhere dented hopes for a fast financial restoration and weighed on traders’ urge for food for riskier property.

Meanwhile, two Federal Reserve officers sounded growing pessimism on the swiftness of any financial restoration from the virus and warned the unemployment fee may rise once more if the illness isn’t introduced beneath management.

Geopolitical tensions additionally supported the safe-haven asset amid developments in Hong Kong, as particulars of a brand new nationwide safety legislation for the territory confirmed Beijing can have overarching powers over its enforcement.

Indicative of sentiment, SPDR Gold Trust holdings rose 2% to 1,159.31 tonnes on Friday, whereas speculators elevated their bullish positions in COMEX gold and silver contracts within the week to June 16.

Spot gold might test a resistance at $1,767 per ounce, a break above which may result in a achieve to $1,796, stated Reuters technical analyst Wang Tao.

Elsewhere, silver gained 1.4% to $17.84 per ounce to its highest in additional than every week.

Palladium rose 0.1% to $1,912.74, whereas platinum jumped 1.3% to $816.27.