SMM: COMEX gold futures fell slightly on Tuesday, but recovered most of their earlier losses to close above the important psychological barrier of $1800 an ounce. With many regions once again taking measures to limit the epidemic, the market is worried about the increasing number of cases of the global coronavirus.

Comex August gold futures fell 0.70 U.S. dollars, or 0.04 percent, to settle at $1813.40 an ounce at 13:30 New York time. At one point in intraday trading, it fell to $1791.10.

Gold prices have been propped up by concerns about tensions between China and the US, while new crown cases continue to rise, but also under some profit-taking pressure, rising last week to levels not seen since 2011.

JeffreySica, founder of SquaredAlternativeInvestments, said: "people expect a broader lockout, which will prompt people to return to the gold market to hedge this uncertainty."

"We are likely to see the Fed not only continue to implement the economic stimulus package, but also accelerate in some cases, thus greatly boosting the price of gold."

Economic restart has been suspended in many parts of Asia as the surge in new crown cases has raised fears of a second wave of outbreaks. At the same time, California has imposed new restrictions on businesses as the number of infections has soared.

The World Health Organization warned on Monday that the epidemic would only get worse if countries did not take strict precautions.

ChintanKarnani, chief market analyst at InsigniaConsultants, said: "the consolidation of gold in the past few days has caused short-term traders to profit when prices rise." Gold futures rose on Monday after two days of losses.

Currently, Karnani said it expects gold to trade in a range of $1, 776. 60, $1, 833. 60.

JamesHatzigiannis, chief market strategist at PloutusCapitalAdvisors, said gold volatility combined with "low trading volume" was a healthy trend for the bull market. "Thursday will be an important day when a lot of economic data will be released," including weekly first-time jobless claims in the United States.

Meanwhile, silver fell 26 cents, or 13%, to $19.53 an ounce in September. Monday's settlement price was $19.788, the highest closing level for the most active contract since September 2016.

CarloAlbertoDeCasa, chief analyst at ActivTrades, said in a report that investors were still in a "wait-and-see state" and that $1815 an ounce was seen as a "solid" short-term resistance level.

It said gold would fall below $1790 an ounce to indicate weakness. He also reiterated that the recent rise in gold prices was driven by "large inflows of demand from ETF funds and fragility of jewellery and industrial demand".

"any change in fundamentals will be reflected in the price, but so far the market believes that the price of gold around $1800 is quite reasonable," it said. "

Analysts say gold prices are still supported by concerns about rising cases of new crown virus infections in the United States and elsewhere.

California Governor Gavin Newson (GavinNewsom) ordered the cancellation of indoor activities in restaurants, bars, zoos, breweries, museums and cinemas.

The death toll in the United States, at 135615, continued to rise after it began to level off in mid-late April. Cases in 41 states and territories in the United States are on the rise within 14 days, according to a tracking by the New York Times.

Worries about Sino-US relations are also a factor supporting gold prices.

The dollar fell as optimism about a possible EU stimulus package boosted the euro.

The holdings of SPDRGoldTrustGLD, the world's largest gold-traded fund, rose 0.3 per cent to 1203.97 tons on Monday, reflecting investors' appetite for gold.

For other precious metals, October platinum futures fell $26.2, or 3%, to settle at $836.80 an ounce.

September palladium futures fell $55.30, or 2.7%, to settle at $1985.60 an ounce.

In addition, COMEX9 copper for monthly delivery closed down 2.25 cents, or 0.8%, at $2.9325 a pound.

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