By Brijesh Patel
(Reuters) – Gold held near a close to eight-year peak on Tuesday, en path to its finest quarter in additional than 4 years, as worries over rising instances of the novel coronavirus and its financial fallout boosted safe-haven demand.
Spot gold was regular at $1,771.30 per ounce by 0306 GMT, simply $7.76 shy of a close to eight-year excessive of $1,779.06 hit final week. U.S. gold futures rose 0.2% to $1,783.80.
Bullion, with greater than 12% good points this quarter, is on observe for its finest quarter since end-March 2016, and can be headed for a 3rd straight month-to-month acquire.
“Gold’s most important helps proper now are unfavourable actual rates of interest throughout the U.S. yield curve, and danger occasion hedging. In that, you may lump U.S. COVID-19 state of affairs, and U.S.-China relations,” stated Jeffrey Halley, senior market analyst at OANDA.
A spike in COVID-19 instances in latest days has pushed some U.S. states to reverse re-openings and shut companies corresponding to bars once more to curtail its unfold.
U.S. Federal Reserve Chair Jerome Powell stated the outlook for the world’s largest financial system is “terribly unsure” and can rely each on containing the illness and on the federal government’s efforts to assist the restoration.
Central banks worldwide have adopted aggressive stimulus measures and saved rates of interest low, serving to the non-yielding asset surge greater than 16% this 12 months.
Capping gold’s advance have been better-than-expected financial readings out of the U.S. and China, which lifted traders’ urge for food for riskier belongings.
“The very fact gold costs stay pretty constructive round risk-on is a bullish sign up its personal proper,” stated Stephen Innes, chief market strategist at monetary providers agency AxiCorp, in a observe.
Elsewhere, palladium fell 0.5% to $1,895.06 per ounce, whereas platinum rose 0.2% to $807.46. Silver was regular at $17.85.
(Reporting by Brijesh Patel in Bengaluru; enhancing by Uttaresh.V)
