Gold prices today fall after rising to near record highs

Marco Green
June 29, 2020

"With COVID-19 cases rising in the USA, real rates well into negative territory and stimulus ongoing, the environment remains conducive to a higher gold price", MKS PAMP said in a note. On the MCX, August gold futures at 9:20 am traded higher by Rs. 85 or 0.18% at Rs. 48390 per 10 gm.

Gold prices in the worldwide market gain as rising fresh coronavirus cases globally dent optimism around swift economic recovery from the Covid 19 fall-out. Prices were $6.76 shy of a near eight-year high of $1,779.06 per ounce, hit last week.

Spot gold was up 0.2% at $1,773.43 per ounce by 0259 GMT.

Indicative of sentiment, SPDR Gold Trust, holdings rose 0.3% to 1,178.90 tonnes on Friday, while speculators increased their bullish positions in COMEX gold and silver contracts in the week to June 23.

Elsewhere, palladium gained 0.7 per cent to $1,873.70 per ounce, while platinum rose 1.8 per cent to $805.57 and silver climbed 0.6 per cent to $17.85.

The death toll from COVID-19 around the world reached half a million on Sunday while overall cases surpassed 10 million. California, most populous U.S. state, on Sunday ordered some bars to close, the first major rollback of efforts to reopen the economy as covid cases soared nationwide. "Rising cases in the US and concerns about a second wave in Europe and Asia are likely to slow down any potential rebound in the economy and that's going to make gold an asset class that is very much in demand", said Michael Hewson, chief market analyst at CMC Markets UK. In times of economic and geo-political uncertainty, gold gains appeal as a safe-haven asset.

Gold traders will be keeping close watch on Federal Reserve Chair Jerome Powell's testimony on Tuesday and United States payrolls data due on Thursday.

Other reports by Click Lancashire

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