Gold prices moved higher on Tuesday as the dollar weakened and equities struggled amid concerns the global economy may not see a significant recovery anytime soon due to a potential second wave of coronavirus infections.
According to reports, several countries including, China, South Korea, Germany and Italy are seeing increased number of new coronavirus cases after reopening their businesses.
The dollar index dropped to a low of 99.66 earlier in the day, and was last seen at 99.90, down 0.28% from previous close.
Gold futures for June ended up $8.80, or about 0.5%, at $1,706.80 an ounce.
Silver futures for July ended up $0.029, or 0.2%, at $15.709 an ounce, while Copper futures for July settled lolwer by about 0.9% at $2.3590 per pound.
Russia overtook Italy and Britain to report the world’s highest tally of cases after the United States and Spain, but President Vladimir Putin announced plans to ease nationwide lockdown measures from Tuesday.
Germany’s Robert Koch Institute reported that the “reproduction rate” – the number of people each person with the disease goes on to infect – had risen to 1.1, meaning that the virus is spreading exponentially.
Negative rates are “among the weaker tools in the toolkit,” Atlanta Federal Reserve bank president Raphael Bostic said in webcast remarks, reiterating the broad view among Fed officials that the U.S. is unlikely to use a policy approach currently used in Europe and Japan.
Infectious disease expert Dr. Anthony Fauci told the Senate Health, Education, Labor and Pensions Committee that a vaccine is essential to stopping the spread of the coronavirus but noted a usable vaccine will not be ready in the near term.
“Even at the top speed we’re going, we don’t see a vaccine playing in the ability of individuals to get back to school this term,” Fauci said.
Fauci also warned that cities and states that reopen prematurely risk seeing “little spikes that might turn into outbreaks.”
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