Gold Rises 0.4% Due to The Demand For Safe Havens on Delta Fears

Gold prices rose on Wednesday, August 18, to approach a two-week high, as demand for the yellow metal, which is considered a safe haven, was boosted by growing concerns about the fast-spreading delta strain of Covid-19 and its economic impact.

Spot gold rose 0.4% to $1,792.42 an ounce, after hitting its highest level since August 6 at $1,795.25 in the previous session.

US gold futures rose 0.3% to $1,793.50.

Risk sentiment remains weak in the broader financial markets, with Asian stocks hovering near their lowest levels since the beginning of the year as the strain sweeps the region’s delta.

Adding to signs of a slowing economy, US retail sales fell more than expected in July.

Investors are now awaiting the minutes of the US Federal Reserve’s policy meeting, which was held in July, scheduled to be published later today, for indications of the US central bank’s plans to cut stimulus policies.