Gold Rebounds After Recent Losses, Settles Higher On Safe-haven Appeal

Gold prices moved higher on Monday, regaining ground after two successive days of losses, on safe-haven buying following another sharp surge in coronavirus cases over the weekend.

The dollar’s weakness amid growing tensions between the U.S. and China contributed as well to gold’s uptick.

The dollar index, which slipped to 96.27, recovered to 96.43 later, but was still languishing in negative territory, trailing its previous close by about 0.23%.

Gold futures for August ended up $12.20 or about 0.7% at $1,814.19 an ounce, moving closer to a near nine-year closing high of $1,820.60 touched last Wednesday (July 8).

Silver futures for September closed stronger by $0.735 or almost 4% at $19.788 an ounce, while Copper futures for September settled at $2.9550 per pound, gaining $0.0575 or about 2% for the session.

According to a report from the World Health Organization (WHO), global coronavirus cases rose by over 230,000 across the globe over a 24-hour period.

According to the UN health agency, the United States topped the list, with more than 66,000 cases recorded, with Florida surpassing the 15,000 mark of new cases on Sunday.

Meanwhile, the relationship between China and the U.S. soured further last week. “The relationship with China has been severely damaged. I don’t think about it now,” U.S. President Donald Trump told reporters on Friday from Air Force One when asked about the second phase trade deal.

The relationship between the two countries has been severely damaged with Beijing’s handling of the coronavirus outbreak. The Chinese has now announced sanctions against U.S. officials, including the Republican senators Marco Rubio and Ted Cruz, in response to Washington’s sanctions against senior Chinese officials.

The material has been provided by InstaForex Company – www.instaforex.com