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Gold futures on Monday edged higher as investors closely watched infections across the world pick up, with South Korea declaring a second wave of the deadly pandemic and the World Health Organization announcing the largest single-day increase of cases on Sunday.
The World Health Organization on Sunday reported the largest single-day increase in cases of COVID-19, more than 183,000, with much of that increase coming from the Americas; while South Korea on Monday declared its resurgence of the deadly virus a “second wave.”
“Safe-haven demand is featured to start the trading week amid a worrisome rise in Covid-19 infections around the globe,” wrote Jim Wyckoff, senior analyst at Kitco.com in a research note.
“The gold and silver bulls are showing impressive strength despite world stock markets [that] are in solid rebounds from their springtime lows,” he wrote in a daily research note.
On Comex, August gold GCQ20, +0.96% rose $15.30, or 0.9%, at $1,768.30 an ounce, after surging 1.3% on Friday to notch a 0.9% weekly gain.
July silver SIN20, +1.33% advanced 25 cents, or 1.4%, to trade at $18.10 an ounce, after booking a weekly rise of roughly 2.1% on Friday.
Metals added to gains slightly on Monday after the Chicago Fed national activity index rose to 2.61 in May from a revised of minus 17.89 in April.
In a research note dated Friday, Goldman Sachs raised its 12-month gold forecast by 11% to $2,000 an ounce citing low real interest rates and concerns over currency debasement.
