Gold Spot Above $1871 Level Target $1900—$1910 – Neal Bhai
Spot gold was down 0.2% at $1,867.36 per ounce by 0333 GMT, after hitting its highest since September 2011 at $1,876.16 in early Asian trade.
U.S. gold futures rose 0.1% to $1,867.
“With tension between the United States and China rising, U.S. bond yields continuing to edge lower, and a weaker dollar very much in evidence, the case for higher gold prices remains strong,” said Jeffrey Halley, a senior market analyst at OANDA.
“Most likely we’re seeing some short-term profit-taking in Asia before the uptrend resumes in European hours.”
Read More : Silver Prices Could Rise to $25 over 6-12 months – Outperforming Gold
In a marked escalation between the world’s two biggest economies, the United States gave China until Friday to close its consulate in Houston amid accusations of spying, which also hit risk sentiment.
Hopes for another round of U.S. stimulus measures also helped gold, which is considered a hedge against inflation and fears of currency debasement.
The dollar index held near a more than four-month low hit in the last session.
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“The spread of the virus and attendant impact on economic growth, rising geopolitical tensions are leading investor to seek safe haven assets like gold,” said National Australia Bank economist John Sharma.
Coronavirus cases continued to surge in the United States, while more than 15.01 million people have been infected by the virus globally.
Elsewhere, silver retreated sharply, falling 2.2% to $22.53 per ounce, having rallied to a near seven-year high, helped by hopes for a revival in industrial activity.
