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Gold steadies in tight range as virus fears offset solid US jobs data

The United States reported more than 55,000 new infections on Thursday, a new daily global record in the pandemic that has infected more than 10.89 million people worldwide

There is also continuing anxiety about the course of the pandemic

US gold futures eased 0.3% to $1,785.

Reuters

Gold was flat, trading in a narrow $5-range on Friday, as worries over a global surge in coronavirus infections and lingering trade tension between the United States and China overshadowed strong U.S. jobs data.

Spot gold was mostly unchanged at $1,775.35 per ounce by 0647 GMT. U.S. markets are closed on Friday ahead of Independence Day on July 4.

US gold futures eased 0.3% to $1,785.

"Nagging doubts appear to remain in investors' minds about the explosion of COVID-19 cases in the U.S. sunbelt states and its possible negative effect on the recovery going forward," said Jeffrey Halley, a senior market analyst at OANDA.

 

The United States reported more than 55,000 new infections on Thursday, a new daily global record in the pandemic that has infected more than 10.89 million people worldwide.

"Geopolitical considerations are also to the fore... with a holiday in the United States, and the weekend upon us, some haven-directed buying of gold is definitely evident," Halley added.

Markets also kept a wary eye on China's trade relations with the United States.

More than 75 members of the U.S. Congress sent a letter to President Donald Trump urging him to make a formal determination of whether China's treatment of Muslim Uighurs and other groups constituted an atrocity.

Indicative of sentiment, holdings of SPDR Gold Trust, rose 0.8% to 1,191.47 tonnes on Thursday.

Stemming bullion's advance, better-than-expected U.S. jobs reports lifted sentiment in wider financial markets.

The U.S. economy created jobs at a record clip in June, but 31.5 million Americans were collecting unemployment checks in the middle of the month.

Palladium fell 0.4% to $1,893.12 per ounce, while platinum rose 0.8% to $809.50, set for its first weekly gain in six.

Silver gained 0.4% to $17.97, heading for its fourth consecutive weekly gain.

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First Published: Jul 03 2020 | 1:11 PM IST

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