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Gold Up Over Continuous Influx of COVID-19 Cases

Published 07/06/2020, 10:10 PM
Updated 07/06/2020, 10:13 PM
© Reuters.
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By Gina Lee

Investing.com – Gold was up in Asia on Tuesday morning, with investors turning to the safe-haven asset as the number of COVID-19 cases continuing to show no signs of abating globally.

There were over 11.5 million cases worldwide as of July 7, with the U.S. accounting for almost 3 million of the cases, according to Johns Hopkins University data.

Gold futures were up by 0.06% at $1,794.65 by 10:12 PM ET (3:12 AM GMT), edging towards the 1,800 mark. Stocks, which usually move inversely to gold, were up on Tuesday.

Meanwhile, the U.S. reported an Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers' Index (PMI) of 57.1 for June on Monday. Despite a higher-than-expected figure exceeding analyst forecasts as well as indicating the U.S. services sector is back to growth, some investors remain cautious about the global economic recovery with the ever-increasing numbers and no cure.

Although this caution will give gold a boost in the short term, investors will also be looking to see the impact of positive data on government stimulus measures globally.

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