Gold Little Changed As Dollar Rises

June 30, 2020

Gold prices were little changed on Tuesday as the dollar index strengthened to a one-month high on concerns that new virus infections will slow the pace of economic recovery.

Spot gold slid 0.1 percent to $1,770.22 per ounce, while U.S. gold futures were up 0.1 percent at $1,783.50 per ounce.

Investors remain concerned about a resurgence in coronavirus infections, with World Health Organization chief Tedros Adhanom Ghebreyesu warning Monday that “the worst is yet to come” and a divided world “is helping the virus to spread.”

According to the latest tally from Johns Hopkins University, there have been more than 10 million confirmed coronavirus infections worldwide since the virus was first identified in China late last year.

Geopolitical tensions also remain in focus after China passed a controversial security law giving it new powers over Hong Kong.

The Trump administration earlier said it was suspending regulations allowing special treatment to Hong Kong over things including export license exceptions.

Investors await comments from Federal Reserve Chair Jerome Powell later in the day for further direction.

In prepared testimony released on Monday, Powell welcomed the return of economic activity, but cautioned the outlook for the United States is still “extraordinarily uncertain.”

The material has been provided by InstaForex Company – .
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