Gold prices retreat amid rising global COVID-19 cases

Gold traded lower earlier on Wednesday in Asia even as the new COVID-19 cases continue to increase globally. However, gold prices still remained above the benchmark $1,800 level.

Gold futures slipped by 0.18% to $1,806.6 per ounce at 12:48 AM ET (05:48 GMT). Stocks, which usually move inversely to gold, also traded lower.

COVID-19 cases have continued to rise with almost 11.8 million cases reported worldwide as of July 8, according to data from Johns Hopkins University data.

In Asia, Hong Kong has considered imposing tighter social distancing measures to combat a third wave in the city. Australia has also re-imposed lockdown measures in Melbourne, its second-largest city.

More than 3 million COVID-19 cases have been confirmed in the U.S. amid Congress’ $2 trillion economic rescue lifeline to combat the pandemic is scheduled to end on July 31. Three officials from the U.S. Federal Reserve warned that the increasing number of COVID-19 cases will hamper the country’s economic recovery.