Gold prices moved higher and front-month futures contract recorded their best close in almost nine years on Tuesday as traders rushed for the safe-haven asset amid uncertainty about pace of economic recovery.
Rising coronavirus cases in several states across America and other parts of the world has raised fears about possibility of another lockdown and a setback to growth.
The dollar’s recovery from recent losses probably limited gold’s uptick a bit. The dollar index, which rose to 97.15, was last seen at 96.90, up 0.18% from previous close.
Gold futures for August ended up $16.40 or about 0.9% at $1,809.90 an ounce, the best finish since September 16, 2011.
Silver futures for September moved up $0.117 or 0.6% to $18.699 an ounce, while Copper futures for September gained $0.0225 or 0.8% to settle at $2.7970 per pound.
Several analysts are warning that recent upbeat data could be undone in July as a resurgence of cases in some states leads to another shutdown of businesses.
The United States is “still knee deep in the first wave” of the coronavirus outbreak, Anthony S. Fauci, the director of the National Institute of Allergy and Infectious Diseases, said as 16 U.S. states reported record increases in the new Covid-19 cases, in the first five days of July, according to a Reuters tally.
Florida is again closing its restaurants to indoor dining, gyms and other indoor venues just weeks after they reopened.
U.S. Federal Reserve official Raphael Bostic told the Financial Times in an interview that there are signs that the American recovery is “levelling off”.
The material has been provided by InstaForex Company – www.instaforex.com
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