Gold hovers towards near 9-year peak amid coronavirus fears

Gold prices steadied near a 9-year peak above the key $1,800/oz level as worries over mounting COVID-19 cases offset hopes of a swift global economic recovery.

Spot gold was trading 0.1 percent higher at $1,810.45 per ounce by 0744 GMT, hovering towards a high of $1,818.09 on Wednesday, its highest since September 2011. U.S. gold futures were flat at $1,819.80.

Asian markets recovered some ground as investors looked past U.S.-China tension and renewed coronavirus lockdowns and hoped global stimulus efforts will yield upbeat outlooks.

On Wednesday, global coronavirus cases reached more than 12 million, with more than half a million dead and the U.S. recording its largest number of daily new infections since the outbreak began. Investor risk sentiment further weakened after Federal Reserve officials suggested the recovery in the U.S. economy may be stalling.

However, the upside in the safe-haven metal appears limited as investors shrug off diplomatic tension between Washington and Beijing to focus on China’s improving economy, while some investors are reluctant to place big bets before the traditional summer holiday season amid uncertainty around the coronavirus pandemic.

Markets now await the U.S. weekly jobless claims later in the day for fresh clues on strength of the labor market.

The greenback against a basket of currencies traded 0.2 percent lower at 96.30, having touched a low of 96.24 earlier, its lowest since June 11. The U.S. Treasury yields edged lower, with the benchmark 10-year note yield trading at 0.654 percent.