Gold prices moved higher on Wednesday as traders picked up the safe-haven asset after reports showed spikes in coronavirus infections and extension of lockdown measures in several places across the European continent.

A drop in Treasury yields contributed as well to the yellow metal’s uptick. U.S. Treasury yields fell for the third successive day. Germany’s benchmark 10-year bond yield fell to a five-week low on doubts about the progress of the global economic reopening.

The dollar index, which advanced to 92.61, pared some gains as the session progressed and was last seen at 92.52, up 0.19% from previous close.

Several European countries, including Germany, France and Italy have expanded virus-related curbs amid a third wave of infections. The head of the World Health Organization said recent increases in deaths and cases represent “truly worrying trends.”

Gold futures for April ended up $8.10 or about 0.5% at $1,733.20 an ounce, after giving up 0.8% a day earlier.

Silver futures for May ended lower by $0.004 at $25.231 an ounce, while Copper futures for May settled at $40.0640 per pound, down $0.0155 from previous close.

In economic news, a report from the Commerce Department showed new orders for U.S. manufactured durable goods unexpectedly decreased in the month of February.

The Commerce Department said durable goods orders slumped by 1.1% in February after spiking by an upwardly revised 3.5% in January. Economists had expected durable goods orders to climb by 0.8% compared to the 3.4% jump reported for the previous month.

The data follows the recent release of disappointing reports on retail sales, industrial production and home sales, although the weakness is largely seen as the result of severe winter storms.

The material has been provided by InstaForex Company – www.instaforex.com

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