Gold hits another record high as Covid-19 fears, weaker US dollar boost demand

Spot gold was up 0.1 per cent at US$1,976.47 per ounce, after hitting a record high of US$1,984.66 in early Asian trade.
Spot gold was up 0.1 per cent at US$1,976.47 per ounce, after hitting a record high of US$1,984.66 in early Asian trade.PHOTO: REUTERS

BENGALURU (REUTERS) - Gold rose to an all-time high on Monday (Aug 3) as a softer US dollar and fears over the global economic fallout from surging coronavirus cases lifted demand for the safe-haven metal.

Spot gold was up 0.1 per cent at US$1,976.47 per ounce by 0028 GMT, after hitting a record high of US$1,984.66 in early Asian trade. US gold futures rose 0.5 per cent to US$1,996.30.

The coronavirus has infected 4.6 million people in the US and more than 17.96 million people globally.

The US is in a new phase of the novel coronavirus outbreak with infections "extraordinarily widespread" in rural areas as well as cities, White House coronavirus experts said on Sunday.

Meanwhile, White House chief of staff Mark Meadows said he was not optimistic on reaching agreement soon on a deal for the next round of legislation to provide relief to Americans hit hard by the pandemic.

The dollar index held close to a more than two-year low against its rivals, making gold less expensive for holders of other currencies.

Asian shares made a cautious start to the new month on Monday.

On the physical side, Chinese gold dealers were forced to offer the steepest-ever discounts last week as demand plunged.

Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to July 28, the US Commodity Futures Trading Commission (CFTC) said on Friday.

Silver eased 0.1 per cent to US$24.35 per ounce, platinum fell 0.8 per cent to US$899.90 and palladium dropped 1.1 per cent to US$2,068.98.