Gold holds firm on coronavirus worries, weaker dollar

Twenty kilogram gold and silver bricks sit at the ABC Refinery smelter in Sydney, New South Wales, Australia, on Thursday, July 2, 2020.

David Gray | Bloomberg via Getty Images

Gold held firm above the psychological level of $1,800 per ounce on Monday, as a weaker dollar and concerns over surging Covid-19 cases around the globe kept the safe-haven metal underpinned.

Spot gold was steady at $1,808.53 per ounce by 0030 GMT. U.S. gold futures were almost unchanged at $1,809.50.

More than 14.38 million people have been reported to be infected by the novel coronavirus globally and 601,961 have died, according to a Reuters tally.

Coronavirus cases continue to rise in the United States. With 3.7 million total cases, the country has almost as many infections as the next three hardest-hit countries combined – Brazil, India and Russia.

The dollar index held close to a more than one-month low hit last week, making gold less expensive for holders of other currencies.

Britain will shelve its extradition treaty with Hong Kong on Monday in response to the national security legislation for Hong Kong that the Chinese parliament passed last month, The Times reported.

EU leaders stood at an impasse on Sunday after three days of haggling over a plan to revive economies throttled by the COVID-19 pandemic.

Speculators reduced their bullish positions in COMEX gold and increased them in silver contracts in the week to July 14, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

On the physical side, bullion remained out of favor last week among consumers in top hubs China and India in the grip of the coronavirus, while investors in Singapore and Japan bought gold and silver to safely park their wealth.

Palladium gained 0.6% to $2,033.35 per ounce, while platinum fell 0.2% to $836.62 and silver edged 0.1% higher to $19.33.

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