Gold steadied near a one-week high on Monday as the dollar weakened, with concerns over mounting coronavirus cases offsetting a risk rally driven by optimism over a vaccine.
Spot gold was little changed at $1,889.01 per ounce by 0743 GMT, having earlier hit its highest level since Nov. 9 at $1,898.81.
U.S. gold futures were flat at $1,886.70.
The dollar index hit a one-week trough, while Asian equities hit a record high.
Coronavirus cases crossed the 11-million mark in the United States on Sunday, prompting new restrictions in Michigan and Washington, while President-elect Joe Biden’s top advisers called for urgent action to address the crisis.
“There still are underlying problems in structural economies, with job creation being the biggest problem,” said Stephen Innes, chief global market strategist at financial services firm Axi, adding that action from governments and central banks was needed to stimulate economies.
New York Federal Reserve Bank President John Williams said on Friday the U.S. economy is still in a “deep hole” and rising infections could slow growth.
Several Fed policymakers are scheduled to give speeches this week, beginning with Vice Chair Richard Clarida at 1900 GMT at a virtual talk hosted by the Brookings Institution.
“Comments from bankers may not be sufficient to rally gold markets to the heights experienced earlier in the year, a dose of fiscal or monetary stimulus may however be effective,” Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.
Gold, which tends to benefit from stimulus measures from central banks as it is considered a hedge against inflation and currency debasement, has gained over 24% this year.
Prices fell 3.3% last week after Pfizer said its experimental COVID-19 vaccine was over 90% effective based on initial trial results.
Silver rose 1.1% to $24.89 per ounce. Platinum gained 1.2% to $899.37, while palladium was 0.9% higher at $2,343.90.
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