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PRECIOUS-Gold firms above $1,800/oz, propped up by virus woes

Published 2020-07-14, 11:22 a/m
© Reuters.
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* SPDR Gold Trust holdings rise 0.3% on Monday

* Dollar falls as euro gains

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Adds comments, updates prices)

By Eileen Soreng and Shreyansi Singh

July 14 (Reuters) - Gold prices firmed above the key $1,800 level on Tuesday, underpinned by concerns over mounting coronavirus cases globally as many regions reintroduced curbs to restrict the outbreak.

Spot gold XAU= gained 0.4% to $1,809.83 per ounce by 2:25 pm EDT (1825 GMT). U.S. gold futures GCcv1 settled mostly unchanged at $1,813.40.

"There's an anticipation of more widespread shutdowns which is drawing people back to gold to hedge against the uncertainty," said Jeffrey Sica, founder of Circle Squared Alternative Investments.

"There's going to be a high likelihood that we'll see the U.S. Federal Reserve not only continue with the economic stimulus programmes, but in some cases accelerate them so that helps gold prices significantly."

Many parts of Asia are finding cause to pause the reopening of their economies as a jump in virus cases fans fears of a second wave, while California clamped new restrictions on businesses as infections soared. World Health Organization on Monday warned the pandemic would only get worse if countries failed to adhere to strict precautions. prices have risen over 19% so far this year, mainly benefiting from lower interest rates and widespread stimulus measures from major central banks as it is widely viewed as a hedge against inflation and currency debasement.

The dollar fell as the euro rose on optimism about the possibility of a European Union stimulus package. USD/

Investors kept an eye on a growing U.S.-China rift over the South China Sea region, with Beijing's announcement that it will slap sanctions on Lockheed Martin (NYSE:LMT) for involvement in the latest U.S. arms sale to Chinese-claimed Taiwan. investor appetite, holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 0.3% to 1,203.97 tonnes on Monday. GOL/ETF

Elsewhere, palladium XPD= eased 0.7% to $1,966.50 an ounce and platinum XPT= edged down 0.3% to $826.05.

Silver XAG= gained 0.4% to $19.16, after hitting its highest since September 2019 on Monday.

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