LONDON: A recovery in world stocks faltered on Monday as the threat of rising coronavirus infections in parts of Europe and the United States curbed risk appetite, boosting demand for safe-haven gold.
"Coronavirus at-the-margin remains an overhang but the opening up of Europe still looks on much more solid foundations than the US/Americas." Those concerns sent gold 0.5per cent higher to US$1,752 per ounce, near its May peak of US$1,764.8, which was its strongest since October 2012. The pandemic is accelerating globally with the World Health Organization reporting a record increase in global coronavirus cases on Sunday.
Torn between record stimulus and growing fears of second- wave infections, stocks have been moving sideways in recent weeks. They had risen more than 40per cent from March lows on hopes the worst of the pandemic was over. Investors are also wary of developments in Hong Kong after details of a new security law for the territory showed Beijing will have overarching powers on its enforcement.