Gold climbs as concern over coronavirus cases increase

Gulf Today Report

Gold advanced on Wednesday, worries about the jump in COVID-19 cases in the United States and logistical challenges due to the mass roll-out of a prospective vaccine boosted the metal.

Spot Gold rose 0.3% to $1,882.06 per ounce by 0320 GMT. U.S. Gold futures were up 0.2% at $1,880.20.

The dollar index was low at 0.1% against some currencies, thereby, increasing the appeal of Gold to other currency holders. 

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Michael Langford, executive director at corporate advisory and consultancy firm AirGuide said, "the initial vaccine being proposed isn't realistic... COVID-19 is still a problem and ultimately there will be further forms of stimulus and this will be positive for Gold and negative for the dollar.”

Gold has climbed by 24% this year. The metal is a shield against inflation and currency debasement.

Silver climbed 0.8% to $24.40 per ounce. Platinum rose 0.6% to $888.66, while palladium was up 0.5% at $2,465.95.