Gold Rises on Continuous Coronavirus Worries

Gold was higher on Monday morning in Asia, with the dollar continuing near multi-month highs. Nevertheless, lingering worries regarding the spread of coronavirus globally and its influence on the economic improvement turned investors towards the yellow metal.

Gold futures were more above $1,788.95 to 0.28% by 12:26 AM ET (4:26 AM GMT). The dollar, which usually moves inversely to gold, fell on Monday but settled near a nine-and-a-half-month high hit throughout the previous week.

Investors are now attending the U.S. Federal Reserve’s Jackson Hole symposium, scheduled between Aug. 26 and Aug. 28, for signs on the central bank’s timeline for asset tapering and interest.

Ahead of the symposium, Dallas Fed President Robert Kaplan, who is amongst the Fed officials most supportive of starting asset tapering soon, said that he might need to modify that support should coronavirus’s Delta variant’s spread influence the economic improvement.

The Bank of Korea will also give down its newest policy decision on Thursday.

Top Asian hubs noticed physical gold demand quiet down throughout the past week thanks to rebounding domestic prices and the seasonal stop.

SPDR Gold Trust (P: GLD) holdings dropped 0.3% to 1,011.61 tons, it stated on Friday. Meantime, U.S. Commodity Futures Trading Commission data reduced their net long positions in silver. It revealed that speculators increased their net long positions in COMEX gold in the week closed on Aug. 17.

Silver bound up 0.2% in different precious metals. Moreover, palladium increased 1.5% following hitting a more-than-five-month low of $2,267.65 earlier in the session. Platinum firmed 0.3% at $998.85.

Federal Reserve conference expected

While the epidemic moves on fuel demand, supply is regularly growing. U.S. output rose to 11.4 million barrels per day in the most recent week, and drilling firms combined rigs for the third week in a row, services company Baker Hughes stated.

But a slide in the U.S. dollar contributed some support, making crude less costly for holders of other currencies.

According to Chiyoki Chen, chief analyst at Sunward Trading, weaker dollar urged investors to rewind their positions.

The dollar index, which gauges the currency versus six rivals, traded at 93.349. It fell slightly from 93.734, its highest in more than nine months caught on Friday.

Chen stated that investors were altering their positions before the Federal Reserve’s yearly Jackson Hole, Wyoming conference on Friday.

The epidemic surge urged the Fed to move the symposium to an online form, raising issues regarding the central bank’s broader assessment of the coronavirus Delta variant’s economic influence as it inches toward reducing stimulus.