Gold & Silver

Gold gains as dollar slips, new virus cases mount

Reuters June 15 | Updated on June 15, 2020 Published on June 15, 2020

Gold prices rose on Monday as the U.S. dollar weakened and fears of a second wave of the coronavirus in Beijing prompted investors to seek the safe-haven metal.

FUNDAMENTALS

* Spot gold was up 0.2% at $1,733.45 per ounce, as of 0038 GMT. * U.S. gold futures rose 0.2% to $1,740.90 per ounce. * Last week, gold posted its biggest weekly percentage gain since April. * The dollar index fell 0.2% against its rival, making gold less expensive for holders of other currencies. *

After weeks with almost no new coronavirus infections, Beijing has recorded dozens of new cases in recent days, all linked to a major wholesale food market, raising concerns about a resurgence of the disease.

* New coronavirus cases and hospitalizations in record numbers swept through more U.S. states, including Florida and Texas.

* The Federal Reserve expects household finances and business balance sheets to suffer “persistent fragilities” as a result of the shock to economic activity arising from the pandemic, the central bank said in a report to Congress on Friday.

* SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.1% to 1,136.22 tonnes on Friday.

* Hedge funds and money managers cut their bullish positions in COMEX gold and silver contracts in the week to June 9, the US Commodity Futures Trading Commission (CFTC) said on Friday.

* On the physical side, gold demand in India was lacklustre last week even as shops reopened, while Bangladesh announced plans to withdraw import taxes.

* Palladium was steady at $1,917.90 per ounce, while silver gained 0.4% to $17.52 and platinum climbed 0.8% to $812.20.

Published on June 15, 2020
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