Gold surges as COVID-19 cases rise globally


Shafaq News / Gold prices rose on Tuesday as surging COVID-19 cases and restrictions weighed on investors' appetite for traditionally riskier assets and boosted bets for further stimulus ahead of the Federal Reserve's policy meet.

Spot gold rose 0.7% to $1,839.20 per ounce by 07:05 GMT, while U.S. gold futures gained 0.6% to $1,843.80.

The pandemic continued to spread globally, prompting tighter restrictions in Netherlands, Germany, and London, while deaths crossed 300,000 in the United States, pushing Asian equities to a more than one-week trough.

"The recent lockdowns mean that there is going to be more stimulus needed, whether from the (U.S) Congress or the U.S. Federal Reserve," said Stephen Innes, chief global market strategist at financial services firm Axi.

U.S. lawmakers appeared optimistic over a fiscal coronavirus stimulus deal split into two parts in an attempt to win approval, pushing the U.S. dollar to languish near multi-year lows.                   

Silver rose 1.4% to $24.14 an ounce, platinum added 0.2% to $1,009.50 and palladium gained 0.4% to $2,302.47.

Shafaq Live
Shafaq Live