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Gold Retreats Over Positive Data, But Losses Curbed Over Mounting COVID-19 Cases

Published 07/02/2020, 11:34 PM
Updated 07/02/2020, 11:37 PM
© Reuters.

© Reuters.

By Gina Lee

Investing.com – Gold was down on Friday morning in Asia, with investor risk appetite increasing after the release of positive data from the U.S. and China.

China reported a Caixin Services Purchasing Manager’s Index (PMI) of 58.4 for June on Friday, which beat the previous month’s figure of 55 and was the highest PMI reading in two months.

The U.S. also released positive data a day before, announcing a 4.8 million surge in non-farm payrolls for June, the biggest increase since government records began in 1939.

Gold futures were down 0.14% at $1,787.50 by 11:36 PM ET (4:36 AM GMT). Stocks, which usually move in the opposite direction to gold, were up on Friday.

But the yellow metal’s losses were curbed with the ever-increasing number of COVID-19 cases globally and simmering tensions between the U.S. and China.

There are now more than 10.8 million global cases as of July 3, according to Johns Hopkins University data. Almost 3 million are U.S. cases, with 37 states recording rising numbers. Texas Governor Greg Abbott ordered on Thursday that face masks be worn in counties with over 20 COVID-19 cases.

Gold also stands to gain from the increasing tensions between the U.S. and China over the new national security laws in Hong Kong. The U.S. Senate passed sanction measures against Chinese entities involved with enacting and upholding of the law, with the legislation now headed to President Donald Trump’s desk for his approval or veto.

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