Gold near 9-year peak as coronavirus fears dent investor risk-appetite 

Gold prices rallied to a near 9-year high as worries over surging COVID-19 cases and hopes of more stimulus measures from the U.S. Federal Reserve boosted the safe-haven metal's appeal.

Spot gold was trading 0.2 percent higher at $1,798.36 per ounce by 0825 GMT, having hit a high of $1,801.30 earlier, its highest since November 2011. U.S. gold futures rose 0.05 percent to $1,809.70.

The U.S. coronavirus outbreak crossed over 3 million confirmed cases as more states reported record numbers of new infections, stoking fears that hospitals will be overwhelmed and prompting New York to expand its travel quarantine for visitors from three more states.

On Tuesday, California reported more than 10,000 coronavirus cases, a record rise for a single day, while cases were also on the rise in the Australian state of Victoria, which led to lockdown measures being reimposed in Melbourne.

Risk sentiment further weakened after Federal Reserve officials expressed concern that the surge in coronavirus cases could harm economic growth just as stimulus measures begin to expire.

Adding to economic concerns, the European Commission forecast the euro zone would drop deeper into recession this year and rebound less steeply in 2021 than previously thought. The Commission projected that the eurozone would contract by a record 8.7 percent this year before growing by 6.1 percent in 2021, compared to May forecast of 7.7 percent drop in 2020 and a 6.3 percent rebound in 2021.

However, recent upbeat data from major global economies somewhat supported investor sentiment, limiting the safe-haven metal’s upside. The report from the U.S. Labor Department showed a rebound in job openings, while China’s industrial output has recovered faster than most other countries.

The monthly U.S. Job Openings and Labor Turnover Survey showed hiring accelerated by 2.4 million jobs to 6.5 million, the highest since 2000, while the hiring rate jumped to an all-time high of 4.9 percent from 3.1 percent in April.

The greenback against a basket of currencies traded 0.1 percent lower at 96.87, having touched a low of 96.57 on Monday, its lowest since June 24. The U.S. Treasury yields edged higher, with the benchmark 10-year note yield trading at 0.654 percent.