3 Gold Funds To Buy As Coronavirus Tightens Its Grip

Investors have turned their attention to gold again, especially since the number of new coronavirus cases has shot up sharply over the past few days. Gold, which offers safety in turbulent markets, was primarily driven by the rise in global uncertainty because of the pandemic since its onset this year.

This is precisely what has attracted investors to the yellow metal again, especially as more states report new cases of the disease. Mutual fund investors, who wish to purchase the safe-haven asset to shield themselves from the pandemic’s impact, may find it prudent to do so right now.

Gold Prices Soar

Gold futures for August delivery increased 90 cents on Jun 29, or 0.05%, to settle at $1,781.20 an ounce, after the precious metal witnessed an advance of 1.6% in the week ended Jun 26.

In fact, early last week, the yellow metal touched its highest level since 2012 as the spread of coronavirus gained pace. Gold had hit a high of $1,796.10 on Jun 24, which was the yellow metal’s highest level in almost eight years and close to $1,800.

The rising number of COVID-19 cases in the United States has raised a question about the rate of economic recovery that was anticipated when reopening started in late April.

New COVID-19 Cases Rise Sharply

As of Jun 29, at least 16 states rolled back their plans of reopening their respective economies. After all, the only way to stop the virus from spreading is by practising social distancing measures. Therefore, these states have been asking people to stay away from crowded places and stay at home like before.

In addition, as Jul 4 approaches, authorities are concerned about crowds gathering and celebrating, which could aid further in the spread of the highly infectious disease. Since the economy reopened, most people flocked to public places like bars, pubs, restaurants and various beaches, thus creating more hotspots for infection.

Per the data by Johns Hopkins University, 31 states witnessed a spike in new COVID-19 cases as compared to the previous week. These states comprise Alaska, Arizona, Arkansas, California, North Carolina, Ohio, Pennsylvania, South Carolina and Wisconsin.

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