Gold steadies near record high as virus concerns persist

Spot gold was little changed at $1,975.07 per ounce by 0509 GMT, $9.59 shy of the all-time high hit in the previous session. U.S. gold futures rose 0.3% to $1,991.70.

“The coronavirus problem is going to be with us for a while. It seems that economies around the world will be very fragile for an extended period of time,” said Edward Meir, analyst at ED&F Man Capital Markets.

“They (economies) would require stimulus, monetary easing and lower interest rates to cushion the shocks. All of those would be beneficial for gold.”

Coronavirus cases continue to surge in the United States and elsewhere. The World Health Organization warned that the road to normality would be long, with some countries requiring a reset of strategy.

Central banks around the world have rolled out a flurry of stimulus measures and cut interest rates to mitigate the economic damage caused by the pandemic, helping gold rise more than 30% so far this year as it is seen as a hedge against inflation and fears of currency debasement.

Meanwhile, U.S. lawmakers said they had made progress in talks on a new coronavirus relief bill.