Gold hovered near the $1,800-an-ounce mark, as investors weighed recent coronavirus developments and fresh tensions between the U.S. and China.

Riskier assets including equities took a hit as rising virus cases prompted tighter restrictions from Hong Kong to California. The World Health Organization warned Covid-19 probably won’t disappear in the coming months, and it’s unrealistic to expect that a perfect vaccine will become available to everyone immediately.

Spot gold was little changed $1,800.33/oz at 10:17am in London, while Comex futures for Sept. delivery fell 0.6%. Other precious metals also declined, taking a breather after the recent rally. Bloomberg Dollar Spot Index held steady.

On the trade front, Washington rejected Beijing’s expansive maritime claims in the South China Sea, reversing a previous policy of not taking sides in such disputes and escalating tensions with Beijing on yet another front.

Source : Bloomberg