Gold dips on firmer dollar, second wave fears limit fall

Gold slipped on Monday as the dollar lingered near a more than one-week high, but the decline was limited by fears of a second wave of coronavirus infections in Beijing.

Spot gold was down 0.7pc at $1,718.13 per ounce as of 0929 GMT. U.S. gold futures slipped 0.8pc to $1,722.70.

"We are in a bit of a holding pattern waiting to see whether or not we do get a confirmed second wave, and if economies start to shut again we could see gold go higher" said Michael Hewson, chief market analyst at CMC Markets UK.

Gold is currently lower on the back on a stronger dollar, Hewson added.

Gold prices jumped 2.6pc last week, their best week since April 10, as worries of a new wave of COVID-19 cases clouded hopes of economic recovery.

Beijing has recorded dozens of new cases in recent days, while new infections and hospitalisations in record numbers swept through more U.S. states.

"There's a lack of momentum (in gold)... We have been stuck in a range around $1,700 for a while and it has sapped the demand from speculators such as hedge funds," Saxo Bank analyst Ole Hansen said.

"If we can make it past $1,730 today that may attract some renewed interest."

Hedge funds and money managers cut their bullish positions in COMEX gold and silver contracts in the week to June 9, data from the U.S. Commodity Futures Trading Commission (CFTC) showed.

Meanwhile, SPDR Gold Trust holdings rose 0.1pc on Friday, to 1,136.22 tonnes.

Elsewhere, palladium was down 0.8pc at $1,903.17 per ounce, silver fell 1.7pc to $17.14, and platinum declined 0.6pc to $800.59.