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After recording four straight weeks of gains, Spot Gold continued to edge up on Monday, as economic recovery concerns stemming from the ongoing surge in new COVID-19 cases across the United States and elsewhere supported demand for the haven metal.

At least 15 US states reported a record surge in new infections during the first four days of July, with the total number of confirmed cases in the country already exceeding 2.982 million and the death toll exceeding 132,000.

Globally, the total number of confirmed COVID-19 cases has exceeded 11.571 million, while the pandemic has caused the death of more than 537,000 people.

The yellow metal has also received support amid an environment of low interest rates and unprecedented stimulus measures from central banks across the globe, as it has risen more than 22% since its 2020 low of $1,451.43 registered in mid-March.

As of 9:34 GMT on Monday Spot Gold was edging up 0.06% to trade at $1,776.23 per troy ounce, while moving within a daily range of $1,770.10-$1,778.86. Meanwhile, Gold futures for delivery in August were edging down 0.20% on the day to trade at $1,786.35 per troy ounce, while Silver futures for delivery in September were up 0.76% to trade at $18.462 per troy ounce.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was retreating 0.33% on Monday to 96.83, after earlier slipping as low as 96.82, or a level not seen since July 2nd (96.81).

Today Gold traders will be paying attention to the monthly data on US services sector conditions by the Institute for Supply Management at 14:00 GMT. The respective Non-Manufacturing Purchasing Managers’ Index is expected to come in at a reading of 50.0 in June, up from 45.4 in May, thus, indicating that activity in the sector stopped shrinking.

Meanwhile, near-term investor interest rate expectations were without change. According to CME’s FedWatch Tool, as of July 6th, investors saw a 100.0% chance of the Federal Reserve keeping borrowing costs at the current 0%-0.25% level at its policy meeting on July 28th-29th, or unchanged compared to July 2nd.

Daily Pivot Levels (traditional method of calculation)

Central Pivot – $1,775.02
R1 – $1,777.26
R2 – $1,779.43
R3 – $1,781.68
R4 – $1,783.92

S1 – $1,772.84
S2 – $1,770.60
S3 – $1,768.43
S4 – $1,766.25

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