Gold up on uncertain economic prospects

  • World
  • Wednesday, 05 Aug 2020

CHICAGO, Aug. 4 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as investors are concerned about the uncertainty of the economic landscape worldwide during the COVID-19 pandemic.

The most active gold contract for December delivery rose 34.7 U.S. dollars, or 1.75 percent, to close at 2,021 dollars per ounce.

There is persistent concern about the economic implications the pandemic has created, as governments and central banks worldwide have one after another dished out fiscal and monetary stimulus to limit the damage.

U.S. government bond yield went down, with the 10-year Treasury note offering a yield of 0.54 percent, much lower than usual and sending safe haven demand for the precious metal surging.

Even positive economic figures failed to dampen gold. A report released by the U.S. Department of Commerce showed factory orders rose 6.2 percent in June, better than expected.

Investors are waiting for the Automatic Data Processing, Inc. employment report, which will indicate the direction of the ongoing job losses suffered by Americans because of the COVID-19 outbreak.

Silver for September delivery rose 1.611 dollars, or 6.6 percent, to close at 26.028 dollars per ounce. Platinum for October delivery rose 24.1 dollars, or 2.59 percent, to close at 955.2 dollars per ounce.

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