Gold hits one-month high as fears over rising coronavirus cases lift demand

Gold prices rose on Monday to their highest in a month as surging coronavirus infections intensified concerns over a delay in global economic recovery and prompted investors to seek the safe-haven metal.

Spot gold was up 0.4{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} at $1,749.54 per ounce as of 0030 GMT after hitting its highest since May 20 at $1,751. US gold futures rose 0.6{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} to $1,763.80 per ounce.

Rising coronavirus cases in the United States dented investor sentiment towards riskier assets, sending US stock futures lower in early Asian trade.

Gold is used as a safe investment during times of political and financial uncertainty.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 2.03{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} to 1,159.31 tonnes on Friday from 1,136.22 tonnes on Thursday.

Speculators increased their bullish positions in COMEX gold and silver contracts in the week to June 16, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

On the physical side, gold demand sagged across major Asian hubs as prices resurged last week, although there were expectations that the market may be starting to recover.

Palladium fell 0.4{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} to $1,902.01 per ounce, while silver gained 1{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} to $17.78 and platinum climbed 0.7{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} to $811.10.

Read | World stocks turn higher despite worries over Covid-19 rebound