July 01, 2020
Gold firms near 8 year peak as virus fears prompt safe haven demand
(Reuters) - Gold prices edged higher on Wednesday, hovering near an eight-year high, as a spike in COVID-19 infections in the United States assuaged hopes of a swift economic rebound, pushing investors towards the safety of bullion.
Spot gold edged up 0.1% at $1,782.21 per ounce, after hitting its highest since early October 2012 at
$1,785.46 in the previous session.
U.S. gold futures eased 0.1% to $1,799.30.
Fresh U.S. coronavirus cases could more than double to 100,000 per day if the current surge spirals further out of control, the government's top infectious disease expert warned on Tuesday.
U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell on Tuesday pledged to do more for the U.S. economy as it battles the enormous fallout from the virus outbreak.
Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.
Japanese manufacturers' confidence sank in the second quarter to levels not seen since the 2009 global financial crisis, underscoring the damage from the pandemic.
Sentiment in global equities was shaken after Beijing unveiled new national security laws for Hong Kong, indicating a more authoritarian future, prompting the United States to begin eliminating the city's special status on Monday.
Asian stocks were set for a bumpy start to the second half of the year as optimism about a global economic recovery clashed with indications that the U.S. health crisis may not yet be past
Palladium fell 0.3% to $1,925.05 per ounce, while platinum rose 0.7% to $822.50 and silver gained 0.6% at $18.24.