2020.06.1510:44:00UTC+00Gold Prices Fall On Firmer Dollar

Gold prices fell over 1 percent on Monday as the dollar hovered near a more than one-week high on fears of a second wave of coronavirus infections in the U.S., China and Japan.

Spot gold fell 1.35 percent to $1,713.90 per ounce, while U.S. gold futures were down 1.4 percent at $1,713.

It seems investors are booking profits after strong gains last week. Gold prices jumped 2.6 percent last week, their best week since April 10, as several states in the U.S. reported a surge in new coronavirus infections following the reopening of businesses.

Over 25,000 new U.S. cases were reported on Saturday alone as more states reported record new infections and hospitalizations.

Beijing recorded a spate of new covid-19 cases in a major wholesale food market, raising worries about a second wave of coronavirus infections.

Tokyo reported 47 new coronavirus cases on Sunday, the highest since May 5, as the capital eases restrictions and readies to fully reopen the economy.

Meanwhile, Chinese economic data for May released today missed expectations.

China's industrial production grew 4.4 percent on a yearly basis in May, faster than the 3.9 percent increase logged in April, data from the National Bureau of Statistics showed. Economists had forecast a 5 percent rise.

Retail sales dropped at a slower pace of 2.8 percent in May from last year, slower than the 7.5 percent decrease seen in April. Sales were forecast to fall 2 percent.

During January to May, fixed asset investment decreased 6.3 percent from the same period of last year while economists had forecast a 5.9 percent fall.

The People's Bank of China today injected CNY 200 billion funds into the financial system via medium-term lending facility at a rate of 2.95 percent, unchanged from previous operation.