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PRECIOUS-Gold gains above $1,800/oz as coronavirus cases mount

Published 07/13/2020, 11:38 PM
Updated 07/14/2020, 02:40 AM
© Reuters.
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* Silver scales over 10-month peak
* Global coronavirus cases cross 13 million- Reuters tally
* Specs raise gold bullish positions in week ended July 7
-CFTC
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Adds comments, updates prices)
By Shreyansi Singh
July 13 (Reuters) - Gold prices firmed above the key $1,800
level on Monday, as surging U.S. coronavirus cases boosted hopes
for more stimulus measures by the Federal Reserve to cushion the
economic fallout from the pandemic.
Spot gold XAU= rose 0.6% to $1,809.74 per ounce by 2:21
p.m. EDT (1821 GMT). U.S. gold futures GCv1 settled up 0.7% at
$1,814.1.
"With the uptick in coronavirus cases in the United States,
there is a potential for another shutdown," said Bob Haberkorn,
senior market strategist at RJO Futures.
"Gold is benefiting and will continue to benefit from
anticipated action by the U.S. Fed and other central banks."
Global coronavirus cases passed 13 million on Monday,
according to a Reuters tally, while U.S. cases surged over the
weekend, with Florida reporting an increase of over 15,000 new
cases in 24 hours, a record for any state. Driving inflows into the safe-haven asset further, China
announced "corresponding sanctions" against the United States on
Monday after Washington penalized senior Chinese officials over
the treatment of minority Uighur Muslims in Xinjiang.
The dollar .DXY dropped 0.3% after a third consecutive
weekly decline, while Wall Street's main indexes rose as
investors cheered signs of progress in COVID-19 vaccine
development and an upbeat start to the earnings season. USD/
.N
The yellow metal has risen over 19% so far this year due to
massive stimulus from governments and central banks across the
globe to revive coronavirus-hit economies. Speculators increased bullish positions in COMEX gold and
silver contracts in the week to July 7, data showed on Friday.
CFTC/
Silver XAG= climbed 3.4% to $19.31 per ounce after hitting
$19.35, the highest since Sept. 5, 2019.
Silver may continue to outperform benefiting from both the
positive precious metals environment and its industrial
characteristics, at a time when its supply may remain
constrained, TD Securities said in a note.
Platinum XPT= was 3.3% higher at $841.48 per ounce, while
palladium XPD= gained 1.4% to $1,997.05.



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