Sun, 09 Aug 2020

Gold up over uncertainty of economic recovery

01 Jul 2020, 16:52 GMT+10

CHICAGO, June 30 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange closed at the highest level since September 2011 on Tuesday as investors remained concerned over the continued spread of COVID-19 cases.

The most active gold contract for August delivery rose 19.3 U.S. dollars, or 1.08 percent, to close at 1,800.5 dollars per ounce.

Increase in new cases of COVID-19 infection in many U.S. states drove investors to the precious metal as a safe haven, as they estimated that the economic impacts of COVID-19 are not yet over.

Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, predicted in his testimony before the U.S. Senate Health, Education, Labor and Pensions Committee on Tuesday that new cases of COVID-19 infection in the United States could reach 100,000 per day.

Gold also found support in a weaker dollar on Tuesday.

A report released by the Institute for Supply Management put the Chicago purchasing managers index at a reading of 36.6 in June, worse than expected, as any reading below 50 indicates worsening conditions.

The consumer confidence index released on Tuesday by the U.S.-based Conference Board rose to a three month high in June. Market analysts note the cutoff date for conducting the survey did not allow for a recent rise in cases in states that have begun reopening.

Gold traded up by 12.8 percent for the second quarter, and by more than 18 percent for the first half of this year.

Silver for September delivery rose 57.3 cents, or 3.17 percent, to close at 18.637 dollars per ounce. Platinum for October delivery rose 23 dollars, or 2.78 percent, to close at 851.2 dollars per ounce.

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