Gold Up as COVID-19 Cases Surge

Gold was seen up on Friday morning in Asia as the latest COVID-19 data demonstrated severely increased number of cases globally, with US taking a prominent position in the rise. Coronavirus cases in the US have now reached an all-time high at 14,231 a day, according to Johns Hopkins University data. Europe is also taking a hard hit.

Following the beginning of the week’s excitement over the Pfizer vaccine, markets have now begun to take into account the timeframe, as well as the difficulties in distributing the solution globally. European Central Bank (ECB) President - Christine Lagarde has too warned against too much optimism over vaccine progress: "While the latest news on a vaccine looks encouraging, we could still face recurring cycles of accelerating viral spread and tightening restrictions until widespread immunity is achieved“, she said at “Central Banks in a Shifting World” forum Thursday. 

Additionally, the continued difficult negotiations on the US coronavirus relief package are keeping the markets in check. Democrats are now proposing a $2.2 trillion bill, down from $3.4 trillion, but even this is considered excessive by the Republican party. A substantial financial stimulus package would be expected to weaken the USD, giving gold prices a further boost.

As of 4.16 AM GMT, gold futures edged up 0.14% to $1,875.95.

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