Gold bars. Picture: REUTERS
Gold bars. Picture: REUTERS

Bengaluru — Gold prices eased on Wednesday on the hope of a potential Covid-19 drug and a stronger US dollar, but the fall was limited due to the worry about surging cases of the novel coronavirus in Beijing.

Spot gold was down 0.2% at $1,723.20/oz by 3.02am GMT, holding a tight $6 narrow range. US gold futures fell 0.3% to $1,731.

“The attention remains elsewhere, mostly equity markets. However, Covid-19 nerves as Beijing shutdowns extend should offer support on any dips,” said Jeffrey Halley, senior market analyst at Oanda.

Beijing officials reported several new Covid-19 cases for the sixth consecutive day, while new infections hit record highs in six US states on Tuesday.

However, the dollar rose 0.1% against its rivals, making gold expensive for holders of other currencies.

Meanwhile, a record increase in US retail sales in May supported views the US recession might be drawing to an end, with upbeat trial results for a Covid-19 treatment further aiding investor sentiment.

Geopolitical tension and additional stimulus measures from global central banks also offered some support to the safe-haven, which often used as a safe store of value during times of political and financial uncertainty.

India reported 20 of its soldiers had been killed in clashes with Chinese troops at a disputed border site, while North Korea rejected a South Korea offer to send special envoys and vowed to send back troops to the border.

Elsewhere, palladium dropped 0.9% to $1,914.64/oz, silver fell 0.3% to $17.34, and platinum lost 0.9% to $813.07.


Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.