July 6, 2020 / 1:04 AM / a month ago

PRECIOUS-Gold inches up as rising COVID-19 cases boost safe-haven demand

    July 6 (Reuters) - Gold prices edged higher on Monday as
worries over a surge in coronavirus infections in the United
States dented optimism about signs of a nascent economic
recovery, prompting investors to seek the safe-haven metal.
                            
    FUNDAMENTALS    
    * Spot gold        was up 0.1% to $1,775.97 per ounce by
0031 GMT. U.S. gold futures        eased 0.2% to $1,787.30.
    * In the first four days of July alone, 15 U.S. states
reported record increases in new cases of COVID-19, which has
infected nearly 3 million Americans and killed about 130,000,
according to a Reuters tally.             
    * More than 11.35 million people have been reported to be
infected by the novel coronavirus worldwide so far.             
    * Gold has also been benefiting from lower interest rates
around the world and widespread stimulus measure from major
central banks as it is widely viewed as a hedge against
inflation and currency debasement.
    * Meanwhile, the dollar index        held steady against a
basket of major currencies on Monday.       
    * Investors' focus shifts to U.S. services sector activity
data for June due later in the day.
    * The Institute for Supply Management's index for
non-manufacturing activity is expected to rise to 50.0 in June
from 45.4 in the previous month, indicating activity stopped
shrinking.
    * Asian shares held near four-month highs as investors
counted on super-cheap liquidity and fiscal stimulus to sustain
the global economic recovery even as surging coronavirus cases
delayed reopenings across the United States.            
    * Palladium        fell 0.3% to $1,916.98 per ounce, while
platinum        rose 0.8% to $806.30. Silver        eased 0.1%
to $18.02.
    
    DATA/EVENTS (GMT)
0600  Germany  Industrial Orders MM         May
1345  US       Markit Comp, Svcs Final PMIs June
1400  US       ISM N-Mfg PMI                June

 (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu
Sahu)
  
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