Gold prices soared to a two -week high following a sharp decline in the US dollar, as concerns over the coronavirus continued to support demand for the yellow metal.
In the Asian session, spot gold strengthened around $ 1,803 per ounce after rising more than 1% in the previous session, while gold futures traded at $ 1,805 per ounce.
Readings of manufacturing and services PMI data showing slower growth raise concerns that the delta variant has slowed the economic recovery in the United States.
This in turn added pressure on the US dollar, after being impacted by speculation that the Federal Reserve (Fed) would delay plans to withdraw their stimulus due to the uncertainty posed by the delta variant.
The US dollar retreated from a 9 -and -a -half -month high against major currencies, giving gold prices a chance to rise higher.
Investors are now awaiting Chairman Jerome Powell’s speech at the Jackson Hole symposium this Friday, to get further clues on when the Fed will reduce bond purchases.
