Fri, 07 Aug 2020

Gold down on hopes for economic improvements

Xinhua
11 Jul 2020, 05:30 GMT+10

CHICAGO, July 10 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as investors hoped for improvements in the global economy.

The most active gold contract for August delivery fell 1.9 U.S. dollars, or 0.11 percent, to close at 1,801.9 dollars per ounce.

Gold was under pressure as investors realized that the increase in U.S. COVID-19 cases did not matched the rest of the world, and that while the U.S. economy may be in trouble, there may be a faster recovery in other parts of the world in containing the COVID-19 outbreak.

Most global stock market indexes were positive on Friday, with the exception of Japan's NIKKEI and Hong Kong's Hang Seng, negative to gold. Chinese stocks ended an eight-day winning streak to close lower Friday, with the benchmark Shanghai Composite Index closing down 1.95 percent and the Shenzhen Component Index ending 0.61 percent lower.

A report released by the U.S. Department of Labor showed the producer price index fell by a seasonally adjusted 0.2 percent in June, attributable to a 0.3 percent decline in prices for final demand services. This was worse than expected, curbing gold's fall somewhat.

Silver for September delivery rose 9.1 cents, or 0.48 percent, to close at 19.053 dollars per ounce. Platinum for October delivery fell one dollar, or 0.12 percent, to close at 845.9 dollars per ounce.

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