Gold Rises on Dollar Drop Despite Investor Push to Add Risk COMMODITIES: Gold Rises on Dollar Drop Despite Investor Push to Add Risk
09:17 AM EDT, 07/13/2020 (MT Newswires) -- Gold rose early on Monday even as stock markets worldwide trade higher as the U.S. dollar weakened.
Gold for August delivery was last seen up US$9.30 per ounce to US$1,811.20 per ounce in Comex electronic trade.
The rise in the metal comes even as investors move back to riskier equities, cutting the need for the metal as a safe haven. Stock indexes in Asia and Europe were mostly higher and futures pointed to a higher open for U.S. markets.
"There are plenty of arguments in favour of further price rises: the number of new corona cases is still soaring at a record rate, both worldwide and in the US. This increases the potential for stock market corrections. The technology index Nasdaq even reached a new record high last week," Carsten Fritsch, an analyst with Commerzbank said in a note.
The U.S. dollar weakened, making gold more affordable for international buyers. The ICE dollar index was last seen down 0.15 to 96.5 points