• 6 hours Big Profits Are No Longer The Top Priority For Oil Investors
  • 1 day Banksy’s Littered ‘Monet’ Sells for $10M
  • 3 days Three Renewable Energy IPOs To Watch
  • 4 days Bitcoin Nears $13,000 As PayPal Joins The Crypto Fray
  • 5 days DOJ Declares The Obvious: Google Is A “Monopoly”
  • 7 days Alibaba Is About To Make History Again
  • 8 days Robinhood Users Are Latest Target Of Pandemic Hackers
  • 10 days The Hydrogen Boom Will Provide A $200B Boost To Wind And Solar Energy
  • 11 days Will The 5G Rollout Overshadow This Major Merger?
  • 12 days Corporate Bitcoin Holdings Boost Crypto Confidence
  • 12 days Indonesia Rolls Out Augmented Reality Innovation To Combat COVID
  • 13 days Banks Are Getting Rich On Pandemic Overdrafts
  • 13 days The Real Reason China Is Betting Big On Renewables
  • 14 days Europe Wants To End The Big Tech Monopoly
  • 14 days New Breakthrough Could Transform Rare Earth Mining
  • 15 days Waymo Set To Roll Out Fully Self-Driving Vehicles
  • 16 days Aramco Dividend Won’t Cover Saudi Budget Gap
  • 17 days Credit Card Debt Plummets Amid COVID
  • 18 days Biden Plan Targets “Wealthy” Taxpayers
  • 19 days McAfee Arrested In Spain On Tax Evasion Charges
Is The Silver Rally Over Or Just Getting Started?

Is The Silver Rally Over Or Just Getting Started?

Analysts at Goldman Sachs lifted…

Where Will Gold Go From Here?

Where Will Gold Go From Here?

The Fed recently issued a…

COVID-19 Is Crushing Palladium Demand

COVID-19 Is Crushing Palladium Demand

The global platinum market is…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Precious Metals

Gold Remains Strong Amid Increasing Economic Uncertainty

Gold

Gold held firm above the $1,800 per ounce level on Monday as uncertainties surrounding the impact of surging coronavirus cases continue to steer investor attention towards safe-haven assets.

On Sunday, the World Health Organization reported a record increase in global coronavirus cases, with the total rising by 230,370 in 24 hours. The biggest increases were from the United States, Brazil, India and South Africa.

“THE UNCERTAINTY RELATED TO THE CONTINUED INCREASE IN THE VIRUS COUNT IS ADDING SOME UNDERLYING SUPPORT TO THE MARKET”

Ole Hansen, SAXO BANK ANALYST

Fears of a prolonged impact on global economies carried over into the new week, which combined with escalating US-China trade tensions added further support for gold prices.

Spot gold rose 0.5% to $1,807.96 per ounce by noon EDT, close to the new eight-year high it set last week. US gold futures were also up 0.5% at $1,811.30 per ounce.

“The uncertainty related to the continued increase in the virus count is adding some underlying support to the market … There’s absolutely no reason not to hold on to long positions for at least as long as we stay above the $1,765 area,” Saxo Bank analyst Ole Hansen told Reuters. Related: Tesla Faces $20 Billion In Short Interest

However, the emergence of a viable vaccine to treat the virus could prompt profit-taking in gold, Hansen cautioned.

The precious metal’s recent surge also came despite equity market gains in Asia and Europe.

“Gold price is consolidating above $1,800 with bullion holding onto this significant threshold despite stocks in green,” ActivTrades chief analyst Carlo Alberto De Casa said in a note. “This confirms investors’ huge appetite for the yellow metal in this uncertain phase on markets.”

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment