Gold held firm above the $1,800 an ounce level on Monday as uncertainties surrounding the impact of surging coronavirus cases continue to steer investor attention towards safe-haven assets.
On Sunday, the World Health Organization reported a record increase in global coronavirus cases, with the total rising by 230,370 in 24 hours. The biggest increases were from the United States, Brazil, India and South Africa.
Fears of a prolonged impact on global economies carried over the new week, which combined with escalating US-China trade tensions added further support for gold prices.
Spot gold rose 0.5% to $1,807.96 per ounce by noon EDT, close to the new eight-year high that it set last week. US gold futures were also up 0.5% at $1,811.30 per ounce.
“The uncertainty related to the continued increase in the virus count is adding some underlying support to the market … There’s absolutely no reason not to hold on to long positions for at least as long as we stay above the $1,765 area,” Saxo Bank analyst Ole Hansen told Reuters.
However, the emergence of a viable vaccine to treat the virus could prompt profit-taking in gold, Hansen cautioned.
The precious metal’s recent surge also came despite equity market gains in Asia and Europe.
“Gold price is consolidating above $1,800 with bullion holding onto this significant threshold despite stocks in green,” ActivTrades chief analyst Carlo Alberto De Casa said in a note. “This confirms investors’ huge appetite for the yellow metal in this uncertain phase on markets.”