Gold edges lower as economies open up

BENGALURU (June 2): Gold prices inched lower today on signs of economic recovery as more countries eased lockdown curbs, while protests in the US, Sino-US tensions and a weaker US dollar limited losses.

Spot gold was down 0.1% at US$1,738.12 (RM7,465.23) per ounce as of 0110 GMT. US gold futures rose 0.2% to US$1,753.70.

In a sign that the worst of the economic downturn from the Covid-19 pandemic might be over, US manufacturing activity ticked up slightly from a 11-year low.

China’s factory activity unexpectedly returned to growth in May as restrictions eased, but the improvement was marginal as export orders continued to shrink, a survey showed.

US President Donald Trump vowed to end unrest in major cities across the nation “now”, and stated he would deploy the military if state governors refuse to call out the National Guard.

The protests started over the death of George Floyd, a 46-year-old African American, who died in police custody; and the closely packed crowds sparked fears of a resurgence of Covid-19, which had killed more than 104,000 Americans.

The US was considering welcoming people from Hong Kong in response to Beijing’s push to impose a national security legislation in the city, US Secretary of State Mike Pompeo said.

The US dollar hovered near an over two-month low reached last Friday.

Gilead’s antiviral drug remdesivir provided a modest benefit in patients with moderate Covid-19 given a five-day course of the treatment, while those who received a 10-day course did not fare as well.

Reflecting investor sentiment, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund (ETF), said its holdings rose 0.5% to 1,128.4 tonnes yesterday.

Palladium rose 0.2% to US$1,964.87 per ounce, and platinum was up 0.3% to US$850.19, while silver fell 0.5% to US$18.17.

Source: TheEdgeMarkets