Gold prices dip as surging COVID-19 cases halts recent rally

Gold prices fell earlier on Monday in Asia as a continuous surge in new COVID-19 cases halted its recent rally and battered hopes of a swift economic recovery.

Market sentiment soured as investors digested the number of cases worldwide. The U.S. reported over 2.8 million new COVID-19 cases in the country as of July 6 according to data from the Johns Hopkins University. The figures also saw over 11.4 million cases around the world as of July 6 and has recorded the largest spike in numbers in a day during the weekend.

Gold futures last traded 0.51% lower to $1,780 per ounce at 10:05 PM ET (03:05 AM GMT), losing a portion of its gains from the previous session.   

Stocks, which often move in the opposite direction to gold, traded higher earlier on Monday.

Investors are currently focusing on the U.S. services sector activity data for June, which is expected to be released later in the day. Analysts are forecasting a reading of at least 50 for the Institute for Supply Management non-manufacturing Purchasing Manager’s Index (PMI). A PMI reading of 50 or higher indicates economic growth.