Gold prices fell on Monday to hover near one-week lows as the dollar benefited from rising risk aversion in financial markets. A stronger dollar makes gold more expensive for holders of other currencies.
Spot gold dropped half a percent to $1,803.45 per ounce, after having fallen to its lowest since July 13 at $1,801.20. U.S. gold futures were down 0.6 percent at $1,803.90, with a dip in Treasury yields helping limit the metal’s losses.
Markets fell across Asia and Europe and the dollar gained ground as signs of growing inflationary pressures and concerns that a surge in coronavirus cases will have a dampening effect on the fragile global economic recovery spurred risk aversion.
The global coronavirus caseload has surpassed 190 million as the second wave continues its onslaught across the world due to the spread of new variants.
Daily infections have been surging from the United States and Europe to Asia and the global seven-day average of new cases each day is over half a million for the first time since May.
It’s a quiet day on the economic calendar, with the U.S. NAHB housing market index for July scheduled for release in the New York session.
Focus also remains on the European Central Bank, which meets on Thursday just two weeks after agreeing on its first strategic overhaul in almost two decades.