2021.08.2010:14:00UTC+00Gold Holds Steady As Virus Woes Dent Risk Appetite

Gold held steady on Friday as global risk appetite remained checked by concerns over a slowdown in the global economic recovery due to a resurgence in cases of Delta variant of the virus.

The dollar remained firm in a flight to safety, limiting bullion's safe-haven appeal. Spot gold edged up 0.1 percent to $1,781.99 per ounce, while U.S. gold futures were little changed at $1,783.85.

The dollar strengthened across the board as China's crackdown on the once high-flying technology firms and rising prospects of tighter monetary measures from the Federal Reserve dented risk sentiment.

A rout in Chinese technology giants deepened today after Chinese authorities passed a major data protection law, along the lines of Europe's Global Data Protection Regulation, making it harder and costlier for tech firms in China to access and use consumer information.

The law, one of the world's toughest on personal data security, places legal restrictions on how personal data can be collected, used and managed after it comes into effect on November 1.

On the COVID-19 front, the New Zealand government extended its lockdown till August 24 after reporting eleven new cases today. In the U.S., three Senators had tested positive for Covid-19 despite being vaccinated.

Focus next week will be on the high-profile annual U.S. Jackson Hole conference of central bankers, where Fed Chair Jerome Powell could signal he is ready to start easing monetary support.