Gold prices moved higher on Wednesday, extending gains to a fourth successive session, on continued safe-haven demand amid growth uncertainty about the pace of economic recovery.
Despite massive stimulus and relief plans from central banks and governments, it is feared that global economic recovery is unlikely to be any swift due to the rapid surge in new cases of coronavirus infections across the world.
The dollar’s weakness amid hopes the Fed might announce more stimulus, too contributed to gold’s uptick. The dollar index slipped to 96.40 this noon, losing nearly 0.5% from previous close.
Gold futures for August ended up $10.70 or about 0.6% at $1,820.60 an ounce, the highest settlement price since September 14, 2011.
Silver futures for September gained $0.462 or 2.5% to $19.161 an ounce, while Copper futures for September settled at $2.8240 per pound, gaining $0.0270 or about 1%.
According to Johns Hopkins University report, the overall number of global Covid-19 cases has increased to more than 11.7 million, while the deaths have soared to over 543,000.
Several U.S. states reported sharp increases in number of new infections, with Florida facing an impending shortage of intensive care unit hospital beds. California reported more than 10,000 coronavirus cases on Tuesday, a record rise for a single day.
In Australia, lockdown measures have been reimposed in Melbourne, the country’s second-biggest city.
Dr Michael Ryan, emergencies chief of the WHO said the rise in cases was not due to widespread testing, but because the epidemic was “accelerating.”
Also, the WHO on Tuesday acknowledged the emerging evidence of airborne spread of the novel coronavirus after an open letter by over 200 scientists outlined evidence that showed floating virus particles can infect people who breathe them in.
U.S.-China tensions also remained on investors’ radar after reports suggested that U.S. President Donald Trump’s top advisers weighed proposals to undermine the Hong Kong currency’s peg to the U.S. dollar in a bid to punish banks in Hong Kong.