US Markets

Gold eases on firmer dollar; virus fears limit losses

Credit: REUTERS/MICHAEL DALDER

Gold prices edged lower on Monday due to a stronger U.S. dollar, but worries over surging coronavirus cases and its impact on the global economy kept the safe-haven metal above the psychological level of $1,800 per ounce.

* Specs cut gold bullish positions in week ended July 14 - CFTC

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Adds comments, details, updates prices)

By Brijesh Patel

July 20 (Reuters) - Gold prices edged lower on Monday due to a stronger U.S. dollar, but worries over surging coronavirus cases and its impact on the global economy kept the safe-haven metal above the psychological level of $1,800 per ounce.

Spot gold was down 0.1% at $1,807.55 per ounce by 0242 GMT. U.S. gold futures fell 0.1% to $1,808.30.

"There are technical indications that the U.S. dollar could strengthen and that might be why we are seeing traders in the gold market taking the lid off the price at the moment," said Michael McCarthy, chief strategist at CMC Markets.

"There's no doubt that we are in the medium-term uptrend for gold. It appears that there's a segment of the investment community that remains unconvinced about the V shaped recovery, and they're buying gold."

The dollar index rose 0.2% against its rivals, making gold more expensive for holders of other currencies. [USD/]

Coronavirus cases continue to surge in the United States, adding to concerns over the recovery of the global economy from the effects of the pandemic, which has so far infected more than 14 million people worldwide.

Underscoring the impact of the virus, Japan's exports plunged 26.2% in June from a year earlier, Ministry of Finance data showed on Monday.

Markets are eyeing the European Union Summit for trading cues, with leaders at an impasse over carving up a proposed 750 billion euro ($858.30 billion) recovery fund to revive economies.

"Gold markets are also becoming addicted to large stimulus measures from central banks to provide excess liquidity and which have been driving expectations," Phillip Futures analysts said in a note.

"Central banks may disappoint gold investors if the bankers perceive signs of inflation or economic progress."

Speculators reduced their bullish positions in COMEX gold and increased them in silver contracts in the week to July 14. [CFTC/]

Elsewhere, palladium gained 0.2% to $2,024.40 per ounce, while platinum fell 0.6% to $833.13 and silver dipped 0.3% to $19.25. (Reporting by Brijesh Patel in Bengaluru; Editing by Krishna Chandra Eluri) ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net)) Keywords: GLOBAL PRECIOUS/ (UPDATE 1)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest US Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More