Gold rose as virus woes decrease risk appetite
Gold climbed on Monday in Asia, with the dollar hovering near multi-month highs. However, concerns over the spread of COVID-19 worldwide and its effect on the economic recovery prompted investors to turn toward the safe-haven asset.
Gold futures rose 0.28% to $1,788.95 by 12:26 AM ET (4:26 AM GMT). The dollar, which typically moves inversely to gold, fell on Monday but stayed near a nine-month-and-a-half high reached during the previous week.
Investors now turn to the US Federal Reserve’s Jackson Hole symposium, set to happen between August 26 and August 28. The symposium could provide clues on the central bank’s timeline for asset tapering and interest.
Demand for physical gold slowed down in top Asian hubs during the previous week due to recovering domestic prices and the seasonal pause.
SPDR Gold Trust holdings dipped 0.3% to 1,011.61 tons on Friday. Meanwhile, US Commodity Futures Trading Commission data revealed that speculators upped their net long positions in COMEX gold in the week ended August 17 and cut their long positions in silver.
In other precious metals, silver inched up 0.2% and palladium rose 1.5% after hitting an over five-month low of $2,267.65 earlier in the session. Platinum settled 0.3% at $998.85.