Gold falls slightly, losses limited amid COVID-19 surge and simmering U.S.-China relations

Gold falls slightly, losses limited amid COVID-19 surge and simmering U.S.-China relations

Gold prices were down slightly on Wednesday in Asia, losing gains made in a previous session. However, the safe haven asset’s losses remained limited as COVID-19 worries mounted on top of worsening U.S.-China relations.

Gold futures slipped by 0.11% to $1,811.35 per ounce at 11:44 PM ET (4:44 AM GMT), still keeping above the $1,800 mark.

With the number of COVID-19 cases around the world continues to rise, California Governor Gavin Newsom on Monday re-imposed social-distancing measures to be followed across the largest U.S. state.   

In Asia, Tokyo raised the COVID-19 warning to its highest level on Wednesday, while Hong Kong implemented strict social-distancing measures, closing public areas and charging fines for those without face masks on public transport.

Demand for gold further strengthened amid souring U.S.-China relations after U.S. Secretary of State Mike Pompeo’s statement on Monday calling China’s claims in the South China Sea “illegal”. Later on, U.S. President Donald Trump on Tuesday would sign an executive order to end Hong Kong’s preferential trade status. The order will revoke all special privileges, special economic treatments, and ban the export of sensitive technology exports.  

Trump also gave the signal to sanction Chinese entities that were involved in putting Hong Kong’s national security laws in place since July 1.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?