Gold gains as dollar weakens, fears of economic damage mount
Gold prices edged up on Monday as the U.S dollar hovered near a two-week low touched in the previous session, while coronavirus lockdowns tightened across the world and stoked fears of economic damage, lifting demand for safe-haven bullion
Gold prices edged up on Monday as the U.S dollar hovered near a two-week low touched in the previous session, while coronavirus lockdowns tightened across the world and stoked fears of economic damage, lifting demand for safe-haven bullion.
FUNDAMENTALS
- Spot gold was up 0.3% at $1,621.85 per ounce, as of 0029 GMT. U.S. gold futures rose 1% to $1,641.80.
- The dollar was holding close to its lowest since March 17, touched on Friday, making gold cheaper for investors holding other currencies. - Physical gold dealers struggled to meet surging safe-haven demand last week, especially in Singapore, as the outbreak choked global supply chains, while massive discounts were offered in India amidst a lockdown.
- The coronavirus pandemic has already driven the global economy into recession and countries must respond with "very massive" spending to avoid a cascade of bankruptcies and emerging market debt defaults, the head of the International Monetary Fund warned on Friday.
- Asian shares slid on Monday and oil prices took another tumble as fears mounted the global shutdown for the virus could last for months.
- The U.S. House of Representatives on Friday approved a $2.2 trillion aid package - the largest in history - to help cope with the virus-inflicted economic downturn, while U.S. consumer sentiment dropped to near a 3-1/2-year low in March.
- U.S. deaths from coronavirus could reach 200,000 with millions of cases, the government`s top infectious diseases expert warned on Sunday as New York, New Orleans and other major cities pleaded for more medical supplies.
- European Central Bank chief urged wrangling EU leaders to act more decisively to cushion the economic hit of the pandemic, three sources familiar with the matter said on Friday.
- The number of deaths in Italy fell for the second consecutive day on Sunday but the country still looked almost certain to see an extension of stringent virus containment measures.
- A growing number of imported virus cases in China risked fanning a second wave of infections when domestic transmissions had "basically been stopped", a senior health official said on Sunday.
- Holdings in the world`s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 1.17% to 964.66 tonnes on Friday.
See Zee Business Live TV Streaming Below:
- Palladium rose 0.8% to $2,287.98 per ounce, platinum slipped 0.5% to $738.05, while silver eased 0.8% to $14.36.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.