Gold rebounded from one- week low hit in the previous session, as a dip in U.S. Treasury yields and renewed concerns about the impact on growth from surging cases of the Delta coronavirus variant worldwide boosted the safe-haven appeal of the precious metal.
Spot gold edged up 0.2 percent to $1,816.26 per ounce, after having hit a low of $1,794.06 in the previous session. U.S. gold futures were up half a percent at $1,818.70.
Benchmark 10-year Treasury yields hovered near five-month lows, while the dollar held firm near 3-1/2-month highs, limiting gold’s appeal.
On the COVID-19 front, the Centres for Disease Control and Prevention placed the U.K. on its highest risk category, ordering U.S. citizens to “avoid travel to the United Kingdom”.
Brazil, South Africa and the Netherlands were also included on Level 4 category due to a spike in infections.
South Australia moved to a lockdown, joining Sydney and Victoria after identifying new cases of the Delta strain.
Australia’s most populous state New South Wales continued to struggle with the Delta outbreak, recording 79 new cases today.
On the economic front, U.S. building permits and housing starts figures for June are set for release in the New York session.