Gold prices down on higher dollar due to China Covid-19 fears ‎

Gold prices fell today, Monday, after the dollar rose due to the demand for a safe haven sparked by protests in many Chinese cities over the strict restrictions to combat the Corona virus.

According to Reuters, the spot gold price fell 0.4 percent to $1,749 an ounce at 0314 GMT. US gold futures fell 0.2 percent to $1,749.90.

The dollar index rose 0.4 percent, making dollar-denominated bullion more expensive for buyers who hold other currencies.

“Gold prices are closely tracking the movements of the US dollar, and it seems that the increasing uncertainty due to the growing unrest in China supported the dollar this morning,” said Yip Dezm Rong, market analyst at IG.

Clashes took place between hundreds of demonstrators and police in Shanghai on Sunday evening, after protests against China’s strict restrictions on the Corona virus erupted for the third day and spread to several cities in the wake of a fire that resulted in deaths in the far west of the country.

At the same time, on Monday, China recorded the fifth consecutive record in daily infections with the Corona virus.

Major cities such as Chongqing and Guangzhou are still struggling to contain the outbreak, with thousands of infections recorded, while hundreds of injuries were recorded in several cities across the country on Sunday.

As for other precious metals, silver fell 1.8 percent to $21.21 an ounce, platinum fell 0.3 percent to $978, and palladium fell 0.3 percent to $1,846.94.