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Gold pulls back from nearly 2-month high

Gold futures edged lower Thursday, after pushing to a nearly two-month high in the previous session as investors weighed surging COVID-19 cases outside the U.S.

Gold for June delivery
GC00,
-0.51%

GCM21,
-0.51%

was down $5.70, or 0.3%, at $1,787.40 an ounce on Comex. May silver
SIK21,
-0.68%

was off 13.5 cents, or 0.5%, at $26.435 an ounce.

Gold was pausing after two days of gains that pushed it to its highest level in nearly two months, with gains attributed in part to a fall in U.S. Treasury yields. Falling yields can be a positive for gold, reducing the opportunity cost of holding it and other commodities that don’t offer yields.

Meanwhile, surging COVID-19 cases India and Japan in particular “have revived fears over the global economic recovery,” said Sophie Griffiths, market analyst at Oanda, in a note.

India reported a global record of more than 314,000 new infections Thursday.

“These concerns have not only dragged U.S. interest rate expectations lower, boosting demand for nonyielding gold, but have also lifted demand for safe-haven assets,” Griffiths said.

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