Gold fell in Asia on Thursday morning, nearing a one-week low. Concerns about an increase in COVID-19 cases are a strengthening dollar and an increase in risk appetite, both of which reduce the appeal of the yellow metal to investors.
Gold futures were down 0.20% at $ 1,799.80 since July 12 during the previous session. The dollar, which normally moves against gold, was below a three-and-a-half-month high on Thursday.
Global stocks reported gains as investors moved past concerns about rising COVID-19 cases involving delta variability and inflationary pressures.
“Gold prices are under pressure as the dollar is now at a three-month high and Wall Street is up again for a second day, meaning traders are cracking down on COVID-19 concerns and returning to monetary trading,” DailyFX strategist Margaret Yang told Reuters.
Investors are now awaiting the end of a European central bank (ECP) policy, where it is widely expected that the central bank will adopt a worse position and implement changes in its strategy for the first time.
“The ECB is widely expected to be a dichotomy, so it could lead to a weakening of the euro against the dollar and thus a greenback, which would be negative for gold.
Bank Indonesia will also hand over its policy decision later.
Meanwhile, the 10-year U.S. Treasury yields have risen from a five-month low following a weak 20-year bond auction.
Among other precious metals, silver was up 0.1%, palladium 0.4% and platinum 0 1,080.39.
