Gold's attempt to break US$1,800 fails again

COMEX GC Gold futures started the week on a strong note, climbing to monthly highs on Monday as the number of coronavirus cases spiked upwards alarmingly over the weekend.

The World Health Organization (WHO) reported that global coronavirus infections rose by a record for a single day, with new clusters across the US, Germany and Australia, giving rise to expectations of further stimulus measures. The momentum of rising prices pushed gold futures to close at seven-year highs on Tuesday on a number of positive drivers.

Apart from the Covid-19 spike, the dollar index was weaker, and safe-haven demand for gold increased. Trade relations between the US and China are not moving forward as expected as mixed signals emerged from the White House.