23/06/2020
Al-Eqtisadiah from Riyadh
Gold jumped to the highest level in more than yesterday, with investors looking for a safe haven, following the escalation of fears of the delay in the global economic recovery after the increase in cases of coronavirus.
Spot gold rose 0.5 percent to $ 1751.63 an ounce by 06:50 GMT, after hitting the highest level since May 18. And gold rose in futures trading in the United States 0.7 percent to 1764.50 dollars.
"The risk aversion, in general, supports the market, we see pressure on currencies exposed to growth and stock markets. In general, there are concerns about escalating infection rates, the market is concerned about growth forecasts, and this supports gold," said Michael McCarthy of CMC Markets."
The World Health Organization announced a record increase in cases of coronavirus infection globally yesterday.
Increased injuries in the United States and other countries have dampened hopes for a rapid economic recovery and weakened investor appetite for riskier assets.
Regarding other precious metals, silver rose 1.5 percent to $ 17.86 an ounce, recording its highest level in more than a week.
Palladium fell 0.1 percent to $ 1908.08, while platinum jumped 0.8 percent to $ 812.27.
To that, the dollar fell yesterday, in a volatile session, as investors seek to determine the path amid a worrying rise in Coronavirus infections and whether this will lead to the postponement of the economic recovery.
According to "Reuters", the Australian dollar led modest gains in Asia, as the central bank governor said, "The repercussions of a pandemic as a Cofeed-19 will not be as bad as it was initially feared."
But the record increase in the number of injuries globally curbed market moves while caution reinforced measures adopted by Beijing and parts of Australia to reimpose some restrictions.
The heavily affected Australian dollar reversed its early losses, rising 0.3 percent in its latest trade to $ 0.6854, and it's New Zealand counterpart increased by the same to $ 0.6422.
Against a basket of currencies, the US dollar gave up last week's gains, losing 0.2 percent to 97.501.
There was little change in the Japanese currency, which is considered a safe haven and was recorded in the most recent transactions, 106.87 yen, and did not move far from the highest level in the month that it recorded earlier in the month at 106.58 yen against the dollar, which indicates a high degree of caution.
The European single currency rose 0.2 percent to $ 1.1200 after falling to a three-week low of $ 1.1168 in early trade, while a split among European Union leaders over the proposed fund structure for recovery from Covid-19 continued investor anxiety.
The pound sterling has stabilized above the lowest level in three weeks slightly at $ 1.2393 affected by the possibility of failure to reach a trade agreement between Britain and the European Union, with little progress in trade talks between the two sides.
