Gold remains resilient as coronavirus reduces risk appetite
Gold prices remained steady on Friday. This was as global risk appetite remained constrained by fears of a slowing global economic recovery due to renewed cases of the delta strain of the coronavirus.
The dollar remained resilient in the face of investments in safer securities, which limited gold's appeal as a "safe-haven currency. Spot gold rose 0.1 percent to $1,781.99 an ounce, while U.S. gold futures were little changed at $1,783.85.
Gold remains resilient as coronavirus reduces risk appetite
The dollar strengthened amid China's crackdown on once-dynamic tech companies and the growing prospect of monetary tightening by the Federal Reserve, which reduced risk appetite.
The fall in shares of Chinese tech giants intensified after Chinese authorities passed an important data protection law, similar to European data protection regulations, that makes it harder and more expensive for tech companies in China to access and use consumer information.
The law, one of the toughest in the world on personal data security, imposes legal restrictions on the collection, use and management of personal data once it takes effect, which is Nov. 1.
Regarding the COVID-19 virus, the New Zealand government has extended the self-exclusion regime until August 24. This came after eleven new cases were reported today. In the U.S., three senators tested positive for COVID-19 despite being vaccinated.
Next week will focus on the annual conference of U.S. central bank governors in Jackson Hole, where Fed Chairman Jerome Powell may announce his willingness to begin easing monetary policy.
Next week will focus on the annual conference of U.S. central bank governors in Jackson Hole, where Fed Chairman Jerome Powell may announce his willingness to begin easing monetary policy.
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