By Adam Claringbull
Investing.com – Gold was steady on Thursday morning in Asia after a rapid rise overnight. A fall in the dollar and a volatile stock market situation set the stage for the initial rise.
Gold futures inched up 0.06% to $1,956 by 12:05 AM ET (5:05 AM GMT).
A rally in U.S. tech stocks boosted the precious metal’s rise during the previous session, pulling it up from a low of $1,927.20 to an overnight high of $1,959.35. The dollar fell due to increased gains in the euro after the European Central Bank (ECB) expressed confidence in the E.U.’s recovery outlook, adding impetus to gold’s rise. The ECB is due to meet later in the day where it will hand down its rate decision. However, markets in Asia showed only slight gains in morning trade, as the U.S. rally had already been priced in.
Oil fell in morning trade, with Brent crude oil losing ground gained during earlier trading on reports of a rising U.S. crude inventory. In Europe, the U.K. has caused disruption in the Brexit process with a possible attempt to rewrite the terms of the country’s exit deal in what appears to be a contravention of international law. The pound accordingly slumped to a six-week low on fears of a no-deal scenario.
The continued rise in COVID-19 cases globally continues to fuel general uncertainty regarding the economic outlook for the foreseeable future. There are almost 28 million COVID-19 cases globally as of September 10, according to Johns Hopkins University data.
Gold, a safe-haven popular during times of social and economic uncertainty, has seen substantial price increases since the onset of the COVID-19 pandemic with prices topping out above $2,072 in August.