Gold rate jumps amidst coronavirus fear

Gold rate jumped to its highest in more than a month on Monday as investors sought the safe-haven metal after increasing covid 19 cases intensified concerns over a delay in international economic recovery.

Spot gold was up 0.5% at $1,751.63 per ounce by 0650 GMT after hitting its highest since May 18. U.S. gold futures rose 0.7% to $1,764.50.

“General risk aversion is helping the market, we are seeing pressure on growth exposed currencies and on share markets. Overall, there are concerns about increasing infection rates,” said chief strategist at CMC Markets. Michael McCarthy.

Gold may test a resistance at $1,767 per ounce, a break above which might lead to an increase to $1,796.