Gold prices rose on Monday as the number of coronavirus cases globally continued to grow. Ahead of the Federal Reserve’s meeting, scheduled for his week, bullion was also given a boost, thanks to a weakened US dollar.
Spot gold was up 0.05% to $1,780.28 per ounce by 09:52 GMT, while US gold futures grew 0.12% to $1,779.90 per ounce.
“The Covid-19 situation in India and Japan is deteriorating. So, that is boiling demand for safety, resulting in higher gold prices,” Margaret Yang, a strategist at DailyFX, told Reuters, adding that a weakening dollar is further supporting prices for the precious metal.
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On Monday, India set a global record of the most Covid-19 infections registered in a single day, with 352,991 new reported cases. Meanwhile, several Japanese prefectures, including Tokyo, have declared a state of emergency to contain a new outbreak of coronavirus before the Olympics begin.
According to the US Commodity Futures Trading Commission, speculators raised their bullish positions in COMEX gold in the week to April 20. However, very strong US economic data released on Friday capped gold’s gains, according to Yang.
Investors will reportedly be watching the outcome of the Fed’s two-day policy meeting, scheduled for Tuesday.
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Palladium has risen 1.45% to $2,901.41 per ounce, after hitting a record peak of $2,925.14 last week. Vital for the auto-making industry, the metal has been in deficit for several years, and this is expected to continue over the coming years.
“Strong industrial demand from the auto sector and investor interest saw palladium trade to a fresh record high … underpinned by Nornickel’s lacklustre output numbers and continued strong demand from tightening emissions standards,” opined independent analyst Robin Bhar.
Other precious metals are also trading higher, with silver gaining 0.49% to $26.13 per ounce and platinum up 0.54% to $1,238.56.
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