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Felicia Tan
in
Forex
June 25 21:40

Gold under pressure as the US dollar strengthens over fears of coronavirus

The price of gold fell on Thursday, while an increase in the number of coronavirus infected led to a fall in demand for more risky assets, but pushed up the US dollar.
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The gold spot price fell 0.11% to $1,759.5 per troy ounce by 19:47 SGT, trading close to its highest level since October 2012 of US$1,779.06 reached on Wednesday.
World equities hit new low in more than a week as the acceleration of coronavirus cases in the US and the IMF forecast of a near 5% decline in the global economy weakened appetite for risk.
While the negative sentiment in stock markets supports gold, "the markets have a strong aversion to re-imposed restrictions, but whenever we see such movements, it is usually favorable to the dollar," said OANDA analyst Craig Earlam.
US dollar strengthened on Thursday, as rising trading tensions, combined with concerns about a second wave of coronavirus fuelled demand for a safe currency.
Palladium fell by 0.04% to US$1,863.03 per ounce and silver dropped 0.07% to US$17.51 per ounce. Platinum rose 0.36% to US$802.77.