Gold Markets: Dollar, coronavirus pandemic

A man counting gold bars.

Akos Stiller | Bloomberg | Getty Images

Gold prices edged higher on Thursday following a steep fall in the previous session, as a weaker U.S. dollar and worries over the global economic outlook due to rising Covid-19 cases underpinned the metal’s appeal.

Fundamentals

Spot gold inched up 0.1% to $1,944.58 per ounce by 0059 GMT, after falling 1.4% on Wednesday.

U.S. gold futures rose 0.3% to $1,950.60.

The dollar index fell 0.1% after a significant rise in the last session, making gold less expensive for holders of other currencies.

U.S. private employers hired fewer workers than expected for a second straight month in August, suggesting that the labor market recovery was slowing as the Covid-19 pandemic persists.

U.S. business activity and employment ticked up through late August, the Federal Reserve said on Wednesday, but economic growth was generally sluggish as Covid-19 hotspots hampered reopening efforts that fueled an early-summer rebound.

Gold is used as a safe investment during times of political and financial uncertainty.

More than 25.88 million people have been reported to be infected by the novel coronavirus globally and 857,881? have died, according to a Reuters tally.

Asian equities were set to open higher on Thursday.

Market participants now await readings on services activity in China and the initial U.S. jobless claims report due later in the day, as well as U.S. payroll figures on Friday.

Silver eased 0.1% to $27.48 per ounce, platinum rose 0.1% to $906.69 and palladium fell 0.3% to $2,241.10.

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