Gold prices ease as dollar firms, virus fears cap losses

Dubai - SPDR Gold Trust holdings rise 0.3 per cent on Monday.

Gold prices edged lower on Tuesday, as the US dollar strengthened, although worries over surging coronavirus cases globally and Sino-US tensions put a floor under bullion prices.
Spot gold was down 0.1 per cent at $1,801.11 per ounce by 0647 GMT. US gold futures fell 0.6 per cent to $1,804.
Gold prices in Dubai for 24K gold reached Dh217.75 per gram; 22K at 204.50 per gram; 21K at 195.25 per gram and 18K at 167.25 per gram.
"We are seeing pressure on risk assets given the sentiment and concerns, particularly about China and US relations. But the reversal of dollar weakness is knocking gold around a little at the moment, particularly given that prices are around 9-year highs," said Michael McCarthy, chief strategist at CMC Markets.
The dollar index rose 0.1 per cent against its rivals, making gold more expensive for holders of other currencies.
Reflecting increased investor interest in gold, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.3 per cent to 1,203.97 tonnes on Monday.
On the technical front, a bullish target of $1,831 per ounce has been aborted for spot gold as it is about to break a support at $1,796, said Reuters technical analyst Wang Tao.
Elsewhere, palladium gained 0.4 per cent to $1,988 per ounce and platinum rose 0.9 per cent to $835.43. Silver dropped 0.3 per cent to $19.02 per ounce, after hitting its highest since September 2019 on Monday.
- With inputs from Reuters, business@khaleejtimes.com