Gold eased on Thursday as the dollar firmed but fears over a fresh wave of coronavirus infections and the U.S. Federal Reserve’s pledge to keep interest rates low kept bullion close to its highest in over a week.
Spot gold was down 0.33% at $1,730.58 per
The dollar rose versus major currencies, benefiting from safe-haven flows as Wall Street slumped on reports of a rise in virus cases as most U.S. states reopen.
Traders did not read too much into the slight pullback in gold, saying the safe-haven metal’s longer term trajectory was still positive.
Gold has rallied about 20% since touching an over three-month low of $1,450.98 U.S. on March 16.
Low interest rates tend to support gold, considered a hedge against inflation and currency debasement.
Elsewhere, silver declined 3.1% to $17.69 U.S. per ounce.
Palladium fell 1% to $1,928.03 U.S. per ounce, and platinum dipped 2.2% to $814.30 U.S.
