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Coronavirus worries have pushed the gold price to its highest level in over a month.
Bullion is changing hands at up to $1,758 per ounce, up from $1.742 on Friday night, for the first time since 18th May.
Gold shortly jumped to $1758 per oz on the back of an intense risk sell-off in Asia. If investor sentiment deteriorates, the yellow metal could finally make the much-expected breakout to the $1800 mark. Otherwise, we should see a consolidation to $1725/1750 area.
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Anxiety over a possible second wave of Covid-19 infections is knocking investors’ confidence this morning, undermining hopes of a bounceback in growth as economies reopen.
Good Morning from #Germany where Coronavirus infection rate has shot up to its highest level for weeks after >1,000 abattoir employees tested positive for virus, sparking debate about working conditions in its meat processing industry. Reproduction rate spikes to 2.88, from 1.06. pic.twitter.com/MFA4I7G0Pk
#Italy‘s death toll drops to 24, lowest since March 2nd. Infection figures stable: 224 new cases (up 0.09%), current infections down by 240 (40,500 tests). ICU occupancy falls below 150 from height of 4,000. As Italy emerges from the darkness, its statues and seagulls look on. pic.twitter.com/5afVmQJAia
Even though the number of cases in Germany is low, the rise is unnerving. The markets will be watching developments closely here. Germany has been relatively successfully in keeping deaths low and reducing the spread quickly in the first wave, investors will need to this second wave nipped in the bud to boost optimism that a second wave won’t be as devastating the first.
Meanwhile, in the US states such as California and Florida are still seeing the number of cases rise. Apple announced that it will be shutting 11 stores owing to rising cases in some states adding to investor woes. On a positive, the recent outbreak in Beijing appears to be fading.