Gold edges lower as economies open up

Tuesday,   02-Jun-2020   09:04 AM (IST)

Gold prices inched lower on Tuesday on signs of economic recovery as more countries ease lockdown curbs, while protests in the United States, Sino-U.S. tensions and a weaker dollar limited losses. Spot gold was down 0.1% at $1,738.12 per ounce, as of 0110 GMT. U.S. gold futures rose 0.2% to $1,753.70. In a sign that the worst of the economic downturn from the coronavirus pandemic might be over, U.S. manufacturing activity ticked up slightly from a 11-year low. China's factory activity unexpectedly returned to growth in May as restrictions eased, but the improvement was marginal as export orders continued to shrink, a survey showed. U.S. President Donald Trump vowed to end unrest in major cities across the nation "now," and stated he would deploy the military if state governors refused to call out the National Guard. The protests started over the death of George Floyd, a 46-year-old African American, who died in police custody; and the closely packed crowds have sparked fears of a resurgence of COVID-19, which has killed more than 104,000 Americans. The U.S. is considering welcoming people from Hong Kong in response to Beijing's push to impose a national security legislation in the city, U.S. Secretary of State Mike Pompeo said. The dollar hovered near an over two-month low reached on Friday. Gilead's antiviral drug remdesivir provided a modest benefit in patients with moderate COVID-19 given a five-day course of the treatment, while those who received a 10-day course did not fare as well. Reflecting investor sentiment, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings, rose 0.5% to 1,128.40 tonnes on Monday. Palladium rose 0.2% to $1,964.87 per ounce, and platinum was up 0.3% to $850.19, while silver fell 0.5% to $18.17.