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PRECIOUS-Gold inches up as rising COVID-19 cases boost safe-haven demand

Published 07/06/2020, 08:59 AM
Updated 07/06/2020, 09:00 AM
© Reuters.
XAU/USD
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XAG/USD
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GC
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SI
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DXY
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July 6 (Reuters) - Gold prices edged higher on Monday as
worries over a surge in coronavirus infections in the United
States dented optimism about signs of a nascent economic
recovery, prompting investors to seek the safe-haven metal.

FUNDAMENTALS
* Spot gold XAU= was up 0.1% to $1,775.97 per ounce by
0031 GMT. U.S. gold futures GCv1 eased 0.2% to $1,787.30.
* In the first four days of July alone, 15 U.S. states
reported record increases in new cases of COVID-19, which has
infected nearly 3 million Americans and killed about 130,000,
according to a Reuters tally. * More than 11.35 million people have been reported to be
infected by the novel coronavirus worldwide so far. * Gold has also been benefiting from lower interest rates
around the world and widespread stimulus measure from major
central banks as it is widely viewed as a hedge against
inflation and currency debasement.
* Meanwhile, the dollar index .DXY held steady against a
basket of major currencies on Monday. USD/
* Investors' focus shifts to U.S. services sector activity
data for June due later in the day.
* The Institute for Supply Management's index for
non-manufacturing activity is expected to rise to 50.0 in June
from 45.4 in the previous month, indicating activity stopped
shrinking.
* Asian shares held near four-month highs as investors
counted on super-cheap liquidity and fiscal stimulus to sustain
the global economic recovery even as surging coronavirus cases
delayed reopenings across the United States. MKTS/GLOB
* Palladium XPD= fell 0.3% to $1,916.98 per ounce, while
platinum XPT= rose 0.8% to $806.30. Silver XAG= eased 0.1%
to $18.02.

DATA/EVENTS (GMT)
0600 Germany Industrial Orders MM May
1345 US Markit Comp, Svcs Final PMIs June
1400 US ISM N-Mfg PMI June

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