Gold firms above $1,800/oz on virus, subdued dollar

BENGALURU, July 13 (Reuters): Gold prices firmed above the key $1,800 an ounce level on Monday, supported by uncertainty over the impact of surging coronavirus cases and a subdued dollar.

Spot gold was up 0.6 per cent to $1,808.25 per ounce at 0933 GMT. US gold futures were up 0.6 per cent at $1,813.30. "The uncertainty related to the continued increase in the virus count is adding some underlying support to the market ....

There's absolutely no reason not to hold on to long positions for at least as long as we stay above the $1,765 area," said Saxo Bank analyst Ole Hansen.

The World Health Organisation (WHO) reported a record increase in global coronavirus cases on Sunday, with the total rising by 230,370 in 24 hours. The biggest increases were from the United States, Brazil, India and South Africa.

However, the emergence of a viable vaccine to treat the virus could prompt profit-taking in gold, Hansen added.