Gold Flat as Wall Street Advances Despite Mounting U.S. Covid Deaths

By Barani Krishnan

Investing.com - Gold prices held at mid $1,600 levels on Wednesday as the safe-haven crowd looked for clues from Wall Street, where stock prices recorded another significant gain on talk that the U.S. was turning the corner on Covid-19 despite mounting deaths.

Gold futures for June delivery on New York’s COMEX settled up 60 cents, or 0.6%, at $1,684.30 per ounce. June gold hit 2012 highs of $1,742.20 on Tuesday before investors took profits on reports that the coronavirus infection rate in New York, the U.S. epicenter for the pandemic, was stabilizing despite daily death tolls in the hundreds.

The Dow closed up 780 points, or 3.4%, on Wednesday.

Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, reportedly told Fox News that the U.S. was set for a "bad week for deaths," but a "beginning of a turnaround," would emerge after this week.

The positive tone was echoed by New York Gov. Andrew Cuomo, who said if recent lockdown measures, including social distancing, in the state are maintained, the coronavirus outbreak could be "stabilized" within weeks.

But Cuomo also warned that it was too early to take joy or relax existing measures.

"I don’t think we return to normal. I don’t think we return to yesterday," he said. “I think we return to a new normal.”

“Gold is continuing to find its feet in these extraordinary times,” said Craig Erlam, analyst at online trading platform OANDA. “I wonder whether the risk alignment will continue if stock markets do come under pressure again, especially if they do so in a less outrageous manner.”

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