By Bryan Wong
Investing.com- Gold retreated on Wednesday morning in Asia but stayed above the $1,800 mark as the number of COVID-19 cases continues to increase globally.
Gold futures were down by 0.18% to $1,806.6, by 12:48 AM ET (5:48 AM GMT). Stocks, which usually move in the opposite direction to gold, were also down.
COVID-19 infections continue to rise globally with almost 11.8 million cases as of July 8, according to Johns Hopkins University data.
In the U.S., confirmed cases passed the 3 million mark as Congress’ $2 trillion economic rescue lifeline to combat COVID-19 is scheduled to end on July 31. Three officials from the U.S. Federal Reserve warned that increasing number of COVID-19 cases will hamper the country’s economic recovery.
In Asia, lockdown measures were re-imposed in Melbourne, Australia’s second-biggest city. Hong Kong is also considering tighter social distancing measures to combat a third wave of cases in the city.
Meanwhile, investor sentiment improved after Fed Vice Chair Richard Clarida pledged more support from the U.S. central bank on Tuesday.