Dollar, coronavirus pandemic in focus

Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020.

DAVID GRAY | AFP | Getty Images

Gold prices edged up on Tuesday on the back of a weaker dollar, although gains were capped by a rally in U.S. equities and signs of a recovery in global economic activity.

Spot gold edged up 0.1% to $1,987.51 per ounce by 0114 GMT.

U.S. gold futures eased 0.3% to $1,993.30 per ounce.

The dollar was down 0.2% at an over one-week low, making gold cheaper for those holding other currencies.

Asian markets were set to track Wall Street’s technology-driven rally. The Nasdaq hit a record high on Monday, while S&P 500 reached close to its record level.

Indicative of the beginnings of a recovery from the pandemic, Japan’s manufacturers were at their least pessimistic in four months in August, a survey of business sentiment showed.

Germany’s economy is set for a rapid growth over the summer months, but a coronavirus vaccine may be necessary before a complete rebound is possible, the country’s central bank said on Monday.

Investors now await the minutes from the U.S. Federal Reserve’s last policy meeting due for release on Wednesday.

Over 21.81 million people have been reported to be infected by the coronavirus globally and 770,518 have died, according to a Reuters tally.

U.S. President Donald Trump on Monday promised tax credits for firms who relocate manufacturing facilities to the United States from China.

Trump’s administration also stated it will further tighten restrictions on Chinese telecommunications firm Huawei.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.33% to 1,252.38 tonnes on Monday.

Silver climbed 1% to $27.69 per ounce, and platinum rose 0.9% to $957.73. Palladium fell 1.2% to $2,172.80.

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