Gold keeps gains amid decline in sentiment, virus fears
Gold maintained its gains, as a decline in US consumer sentiment and worries over the more virulent Delta variant of the coronavirus increased demand for the safe-haven asset.
Global markets returned to a cautious state after the data released on Friday showed a drop in the US consumer sentiment in early August. The drop in the country’s consumer sentiment was the lowest in almost a decade, precipitated by concerns over the economy’s prospects, inflation, and the recent surge in COVID-19 cases.
Novel variants of the COVID-19 virus, such as the Delta strain, have been moving the bar for herd immunity to almost unreachably high levels, even as countries struggled with vaccine hesitancy and scarce supplies.
Meanwhile, bullion has regained some ground following better-than-expected US data. The said data sent prices tumbling on bets that the US Fed may start rescinding huge monetary stimulus soon.
Investors will be poring over a speech by Fed Chairman Jerome Powell this week, as well as minutes from the Fed’s latest meeting, for further clues about the possible timeline for tapering. Figures for US retail sales are expected to be released on Tuesday.
In related news, spot gold barely moved at $1,779.89 an ounce at 9:48 AM in Singapore, after its 1.5% increase on Friday. Likewise, silver remained steady, while platinum and palladium both suffered declines.