Gold Rises On Growth Worries, Vaccine Uncertainty
Gold edged higher on Wednesday as investors fretted about global growth in light of a resurgence in coronavirus cases and deepening tensions between Washington and Beijing.
Spot gold rose 0.4 percent to $1,899.03 per ounce, after having fallen as much as 1.9 percent on Tuesday amid strength in the U.S. dollar. U.S. gold futures were also up 0.4 percent at $1,902.85.
While the hit to the global economy from the Covid-19 crisis may not be as severe as initially feared, the recovery will be “long, uneven and uncertain”, the International Monetary Fund (IMF) said on Tuesday in its latest World Economic Outlook.
A second wave of coronavirus cases in Europe is prompting new restrictions to stop the spread of virus.
The regional government of Catalonia, Spain’s most-populous region, is weighing a complete shutdown of bars and restaurants to stem the spread of the virus.
In France, Paris, Marseille and seven other large cities have been placed under maximum alert.
The new three-tier system of Covid-19 restrictions has begun in England, raising concerns that the tighter measures will impact economic growth.
A halt in Covid-19 vaccine trials, diminishing prospects for a U.S. coronavirus stimulus package before the U.S. election and rising US-China tensions also helped boost the safe-haven demand for the precious metal.