By Bryan Wong
Investing.com- Gold prices kicked off the trading week essentially flat, barely ticking down despite the continued increase in the number of COVID-19 cases around the world.
Gold futures were down 0.07% to $1,808.65 by 10:35 PM EST (2:35 AM GMT).
The yellow metal typically moves in the opposite direction from equities markets, but stocks across the region also kicked off the week with modest losses.
Investors seem to be taking a wait-and-see attitude to how governments deal with the ongoing spread of the pandemic as well as the possibility of further stimulus in the U.S. and Europe.
European leaders continue to negotiate over a plan to revive economies in the region, but the negotiations have proven difficult and Reuters reported that some diplomats were considering putting off further negotiations until next month. NAB analyst Tapas Strickland told Reuters that the road to a deal is likely to be “a very long and winding” one.
In the U.S., Congress will begin considering a new aid package this week, even as some states put in place new lockdown measures.
“Wall Street remains upbeat, but sentiment on Main Street is turning grim in response to the upsurge in COVID-19 cases that is prompting a renewal of lockdown restrictions,” said Oxford Economics in a note.
The number of cases of COVID-19 around the world is closing in on 14.5 million and more than 600,000 have died, according to John Hopkins University data. A full quarter of the cases and close to a quarter of the deaths are in the U.S., which has just surpassed 140,000 dead from the pandemic.
In Asia, Australia is also struggling to contain the virus with Melbourne reporting 363 new cases and three new deaths. In Hong Kong, which seemed to have effectively contained the virus, saw the number of new cases soar by 108 on Sunday, its highest one-day total to date. The city has reimposed restrictions and plans to tighten them further.