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Gold prices firm as mounting virus cases drive safe haven demand
Gold prices edged decrease in unstable trade on Thursday, as a spike in coronavirus cases and mounting financial tolls drove buyers to the protection of the US greenback and pressured dangerous property.
Spot gold was down 0.2 per cent at $1,758.70 per ounce as of 11:19 a.m. ET (1519 GMT). US gold futures eased 0.four per cent to $1,768.20.
“The market is making an allowance for what sort of ramifications the second wave of the virus may have on the financial system,” mentioned David Meger, director of metals trading at Excessive Ridge Futures.
Regardless of a slight pullback, “the (gold) market appears nicely supported as a result of second wave of coronavirus in america and around the globe, and the financial considerations associated to that’s elevating safe-haven demand,” Meger added.
US shares slipped on Thursday as buyers had been unnerved by an alarming rise in new coronavirus cases and excessive weekly jobless claims quantity.
The weekly jobless claims report on Thursday confirmed hundreds of thousands proceed to gather unemployment checks greater than a month after many companies resumed working following virus-led lockdowns.
Different knowledge underscored expectations that the financial system would contract within the second quarter at its deepest tempo because the Nice Melancholy.
Good points in bullion had been, nevertheless, reduce by safe-haven flows into the buck. The greenback index was up 0.three per cent at 97.39.
Australia and a few US states reported a spike in cases as nicely as Latin America and India, the world’s second greatest bullion client.
“Falls within the gold worth are nonetheless being considered by buyers as shopping for alternatives,” Commerzbank mentioned in a be aware, including, “We subsequently regard the newest weak spot within the gold worth as short-term and envisage new highs within the close to future.”
In different valuable metals, palladium fell 0.eight per cent to $1,848.19 per ounce, platinum was down at 0.four per cent at $796.64 and silver rose 0.9 per cent to $17.68.