Gold markets: Dollar, coronavirus in focus

Gold slipped on Tuesday to trade below the key $1,800 level due to a stronger dollar, though concerns over surging coronavirus cases around the world and Sino-U.S. tensions put a floor under bullion prices.

Spot gold was down 0.2% to $1,798.52 per ounce by 0042 GMT. U.S. gold futures fell 0.7% to $1,802.20.

The dollar index rose 0.1% against its rivals, making gold more expensive for holders of other currencies.

More than 13.02 million people have been reported to be infected by the novel coronavirus globally and 569,336? have died, according to a Reuters tally.

California Governor Gavin Newsom ordered a massive retrenchment of the state’s reopening on Monday, shutting bars and banning indoor restaurant dining statewide and closing churches, gyms and hair salons in hardest-hit counties.

Tensions also grew between the United States and China over disputed claims to offshore resources throughout the South China Sea, with U.S. officials saying China’s claims were “unlawful.”

Gold is often used as a safe store of value during times of political and financial uncertainty.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 1,203.97 tonnes on Monday.

Asian shares are showing a mixed picture on Tuesday after a volatile day in U.S. equity markets amid persistent concerns over the record number of new coronavirus cases worldwide and signs of an economic rebound.

Palladium was steady at $1,979.42 per ounce, while platinum rose 0.6% to $833.14. Silver edged 0.1% lower to $19.07.