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Last Updated : Jul 08, 2020 09:58 AM IST | Source: Reuters

Gold steady near highest since November 2011 on flight to safety

Spot gold was steady at $1,793.56 per ounce by 0031 GMT after hitting its highest since November 2011.

Reuters

Gold held firm near a more than eight-year high on Wednesday, as safe-haven demand was bolstered by worries over surging COVID-19 cases and hopes of more stimulus measures to combat the economic blow.

FUNDAMENTALS

Spot gold was steady at $1,793.56 per ounce by 0031 GMT after hitting its highest since November 2011.

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U.S. gold futures eased 0.2% to $1,806.30 per ounce.

The U.S. coronavirus outbreak crossed a grim new milestone of over 3 million confirmed cases on Tuesday as more states reported record numbers of new infections, and Florida faced an impending shortage of intensive care unit hospital beds.

Lockdown measures were reimposed in Australia's second-biggest city, Melbourne, as officials scramble to contain the coronavirus outbreak.

Three Fed officials expressed concern that the surge in infections threatens to pinch consumer spending and job gains just as some stimulus programmes are set to expire.

One Fed policymaker pledged more support ahead from the U.S. central bank.

Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.

Indicative of sentiment, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.66% to 1,199.36 tonnes on Tuesday.

Asian stocks were set for a mixed open, as an increase in new coronavirus cases in some parts of the world cast doubts over the economic recovery.

The dollar index rose 0.1% against a basket of major currencies.

Palladium fell 0.1% to $1,914.06 per ounce, platinum dropped 0.5% to $831.17 and silver lost 0.2% to $18.26.
First Published on Jul 8, 2020 09:50 am
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