Gold rose on Thursday with grim economic data raising doubts about the recovery of the global economy affected by the Corona virus pandemic, despite the start of some countries to reduce the measures of public isolation imposed by them to contain the disease.
By 0549 GMT, gold prices in immediate transactions rose 0.2% to $ 1688.24 an ounce.
Gold in US futures rose 0.2% to $ 1691.80 an ounce.
“There is a lot of blurring,” said Stephen Ines, chief market expert at Axi Corp. “The markets are still trying to understand what might happen after the isolation ends.”
But he added that the weak economic growth in most countries supported the dollar, which inhibits the gains made by the yellow metal.
The dollar touched the highest level in more than a week against a basket of major currencies.
And gold prices had fallen in the previous session by more than 1% due to the dollar’s rise and the resumption of some of the gold refineries operations, alleviating concerns about global supplies.
Investors are currently watching the weekly US jobless claims data scheduled for later today while closely following developments related to US-China relations after US President Donald Trump threatened to impose new customs duties on Beijing.
“Gold may suffer in the short term, but the driving macroeconomic economy is still indicating a rally towards a record high later in the year,” said Edward Moya, chief market analyst at Oanda.
He added that economic activities are now expected to recover at a much slower pace in the current quarter and this will be supported by supporting expectations that the global monetary and financial stimulus efforts will increase.
As for other precious metals, palladium rose 1.3% to $ 1821.54 an ounce.
And platinum rose 1.3% to 758.20 dollars.
Silver saw a rise of 0.3% to $ 14.97 an ounce.
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