Gold drops just above $1,700 mark amid fears of second COVID-19 wave

Gold prices fell on Monday morning in Asia, but still remained above the $1,700 mark.

Gold futures dropped by 0.26% to $1,709.60 per ounce by 11:58 PM ET (4:58 AM GMT). Meanwhile, Asian stocks saw gains. Gold and stocks have been observed to move in the opposite directions.

With fears growing of a second wave of COVID-19 infections, many speculate that gold could retrieve its safe-haven status amid the pandemic.

China had reported 17 new cases on May 10, with the government placing the northeastern city of Shulan under lockdown.

South Korea also reported 27 new cases on the same day, after just recently easing quarantine measures. The country says that the second outbreak could be linked to the reopening nightclubs in Seoul’s Itaewon area.

International Monetary Fund head Kristalina Georgieva said on Friday that a downward revision of global economic forecasts is in consideration. 

Georgieva had also warned the U.S. and China that restarting a trade war could disrupt recovery of the global economy from the pandemic.

U.S. Federal Reserve regional heads James Bullard, Loretta Mester, and Patrick Harker are scheduled to speak at events on Tuesday.