Gold up on weaker consumer confidence

By Xu JingUnreguser
  • World
  • Wednesday, 29 Jul 2020

CHICAGO, July 28 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose to a new record high on Tuesday as U.S. consumer confidence fell.

The most active gold contract for August delivery rose 13.6 U.S. dollars, or 0.7 percent, to close at 1,944.6 dollars per ounce.

A report released Tuesday by U.S.-based The Conference Board showed consumer confidence fell to 92.6 in July from a revised 98.3 in June, indicating that the U.S. economy may have a longer road to recovery than expected as consumers lose confidence in the labor market and economy as a whole.

U.S. Senate Republicans' 1-trillion-dollar stimulus plan added to market concerns, while the Federal Reserve on Tuesday started its two-day interest-rate-setting meeting.

The tense relationship between the United States and China also supported gold.

There are signs that COVID-19 cases in the United States may have hit the peak in states with recent surges. But cases in the European Union, particularly in Spain and Belgium, are beginning to rise again. Moreover, COVID-19 cases in India are yet to hit the peak.

Investors are focusing on the two-day Federal Open Market Committee meeting which began on Tuesday and will end with a press conference by Fed Chairman Jerome Powell on Wednesday after market close.

There is also concern that the U.S. legislative branch may not enact stimulus measures fast enough to rescue the unemployed from missing rent payments, impacting the housing market.

Silver for September delivery fell 20.1 cents, or 0.82 percent, to close at 24.3 dollars per ounce. Platinum for October delivery rose 19.6 dollars, or 2.03 percent, to close at 986.2 dollars per ounce.

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