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The second wave of concern weighed on risky assets, keeping gold stable
15 Jun 2020

Gold prices were little changed on Monday after posting their best weekly gain since early April as concerns about the second wave of coronavirus infections in Beijing reduced investor appetite for riskier assets.

Spot gold was steady at $1,729.40 per ounce as of 0316 GMT. U.S. gold futures eased 0.1% to $1,734.90.

Metal rose 2.6% last week, posting its biggest weekly gain since April 10.

“The economy is not doing well, we got COVID-19 again and a low-interest-rate environment, I think gold remains bid,” said Stephen Innes, chief market strategist at financial services firm AxiCorp.

Gold stable

“But, we need significant policy input from the U.S. Federal Reserve or governments to add that fourth level of stimulus to get gold to bounce higher.”

After weeks of almost no new coronavirus infections, Beijing has recorded dozens of new cases in recent days. Meanwhile, more states in the U.S. are reporting new infections and hospitalizations.

Rising fears of a resurgence of the disease have dented investor risk sentiment, sending Asian stock markets and oil prices lower.

Further supporting bullion, the dollar index eased 0.2%.

Holdings of Gold at the SPDR Gold Trust, the world’s largest Gold exchange-traded fund, rose 0.1 percent to 1,136.22 tons on Friday.

Speculators cut their bullish positions in COMEX gold and silver contracts in the week to June 9, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Elsewhere, palladium was down 0.1% at $1,916.57 per ounce, silver fell 0.3% to $17.39, platinum was steady at $805.17.

 

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