Gold keeps gains amid decline in sentiment, virus fears

16.08.2021 - Petr Mazaylo
Gold keeps gains amid decline in sentiment, virus fears

Gold maintained its gains, as a decline in US consumer sentiment and worries over the more virulent Delta variant of the coronavirus increased demand for the safe-haven asset.

Global markets returned to a cautious state after the data released on Friday showed a drop in the US consumer sentiment in early August. The drop in the country’s consumer sentiment was the lowest in almost a decade, precipitated by concerns over the economy’s prospects, inflation, and the recent surge in COVID-19 cases.

Novel variants of the COVID-19 virus, such as the Delta strain, have been moving the bar for herd immunity to almost unreachably high levels, even as countries struggled with vaccine hesitancy and scarce supplies.

Meanwhile, bullion has regained some ground following better-than-expected US data. The said data sent prices tumbling on bets that the US Fed may start rescinding huge monetary stimulus soon.

Investors will be poring over a speech by Fed Chairman Jerome Powell this week, as well as minutes from the Fed’s latest meeting, for further clues about the possible timeline for tapering. Figures for US retail sales are expected to be released on Tuesday.

In related news, spot gold barely moved at $1,779.89 an ounce at 9:48 AM in Singapore, after its 1.5% increase on Friday. Likewise, silver remained steady, while platinum and palladium both suffered declines.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?