Gold Slips As Dollar Halts Slide
Gold prices edged lower on Thursday, a day after the U.S. Federal Reserve kept rates near zero, as expected, and repeated a pledge to use its “full range of tools” to support the world’s largest economy.
Given the rising infection numbers in the United States, Brazil and other countries, Fed Chairman Jerome Powell warned that the “economic downturn is the most severe in our lifetimes”.
The U.S. dollar initially moved lower after yesterday’s Fed decision and press conference but has since recovered some of its losses.
Spot gold fell 0.9 percent to $1,952.51 per ounce, while U.S. gold futures were down 0.4 percent at $1,944.40.
Rising coronavirus cases around the world as well as weak corporate earnings updates and economic data from Europe capped bullion’s downside.
Hong Kong, China, Japan, South Korea and India are seeing uptick in virus cases, bringing warnings over complacency.
Australian Prime Minster Scott Morrison has labelled new coronavirus case numbers in Victoria as very concerning and warned the country has “no golden immunity” to the virus.
Vietnam, virus-free for months, has imposed more coronavirus infections as the new virus wave spread to six cities and provinces in six days.
China’s Covid-19 cases have crossed the 100-mark for the second consecutive day, sparking fears of a second wave of the virus attack in the country.
In India, the single-day increase of coronavirus cases crossed the 50,000-mark for the first time, pushing the country’s Covid-19 caseload to 15,83,792.
The three most populous U.S. states set one-day records for Covid-19 deaths on Wednesday, while Brazil, with the world’s second-worst outbreak, set new daily records of confirmed cases and deaths.
Elsewhere, data of Europe showed Europe’s biggest economy Germany had shrunk by a record 10.1 percent in the second quarter, underscoring how fast the economic outlook has deteriorated.
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