Gold poised for best quarter in four years as virus fears persist
India's scrap gold supplies seen at record high on price rally, coronavirus
By Administrator_India
Gold held close to a near eight-year peak on Tuesday, en route to its best quarter in more than four years, as worries over rising cases of the novel coronavirus and its economic fallout boosted safe-haven demand.
Spot gold was steady at $1,771.30 per ounce, just $7.76 shy of a near eight-year high of $1,779.06 hit last week. U.S. gold futures rose 0.2% to $1,783.80.
Bullion, with more than 12% gains this quarter, is on track for its best quarter since end-March 2016, and is also headed for a third straight monthly gain.
“Gold’s main supports right now are negative real interest rates across the U.S. yield curve, and risk event hedging. In that, you can lump U.S. COVID-19 situation, and U.S.-China relations,” said Analyst.
A spike in COVID-19 cases in recent days has pushed some U.S. states to reverse re-openings and close businesses such as bars again to curtail its spread.
U.S. Federal Reserve Chair Jerome Powell said the outlook for the world’s biggest economy is “extraordinarily uncertain” and will depend both on containing the disease and on the government’s efforts to support the recovery.
Central banks worldwide have adopted aggressive stimulus measures and kept interest rates low, helping the non-yielding asset surge more than 16% this year.
Capping gold’s advance were better-than-expected economic readings out of the U.S. and China, which lifted investors’ appetite for riskier assets.
Elsewhere, palladium fell 0.5% to $1,895.06 per ounce, while platinum rose 0.2% to $807.46. Silver was steady at $17.85.
