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PRECIOUS-Gold hits record high as virus fears, weaker dollar boost demand

Published 03/08/2020, 10:50 am
Updated 03/08/2020, 10:54 am
© Reuters.
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Aug 3 (Reuters) - Gold rose to an all-time high on Monday as a softer U.S dollar and fears over the global economic fallout from surging coronavirus cases lifted demand for the safe-haven metal.

FUNDAMENTALS

* Spot gold XAU= was up 0.1% at $1,976.47 per ounce by 0028 GMT, after hitting a record high of $1,984.66 in early Asian trade.

* U.S. gold futures GCv1 rose 0.5% to $1,996.30.

* The coronavirus has infected 4.6 million people in the United States and more than 17.96 million people globally. The United States is in a new phase of the novel coronavirus outbreak with infections "extraordinarily widespread" in rural areas as well as cities, White House coronavirus experts said on Sunday. Meanwhile, White House Chief of Staff Mark Meadows said he was not optimistic on reaching agreement soon on a deal for the next round of legislation to provide relief to Americans hit hard by the pandemic. The dollar index .DXY held close to a more than two-year low against its rivals, making gold less expensive for holders of other currencies. USD/

* Asian shares made a cautious start to the new month on Monday. MKTS/GLOB

* On the physical side, Chinese gold dealers were forced to offer the steepest-ever discounts last week as demand plunged. GOL/AS

* Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to July 28, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. Silver XAG= eased 0.1% to $24.35 per ounce, platinum XPT= fell 0.8% to $899.90 and palladium XPD= dropped 1.1% to $2,068.98.

DATA/EVENTS (GMT) 0800 EU

Markit Mfg Final PMI 1345 US

Markit Mfg PMI Final 1400 US

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