2020.05.1410:26:00UTC+00Gold Extends Gains As Economic Worries Mount

Gold prices rose slightly on Thursday to extend gains from the previous session after Fed Chair Jerome Powell warned of a prolonged recession from the viral outbreak and urged Congress and the White House to act further to counter what is likely to be a severe downturn.

Powell also said that negative interest rates are not under consideration, but the Fed will continue to use all tools to their fullest until the crisis has passed and the economic recovery is well under way.

Spot gold edged up 0.1 percent to $1,718.57 per ounce, after having risen 0.8 percent in the previous session. U.S. gold futures were up 0.6 percent at $1,726.60.

Fears of a second wave of coronavirus infections and escalating U.S.-China tensions also remained on investors' radar.

As Covid-19 cases rise with an alarming rate across the world each day, Dr Michael Ryan, executive director of the WHO, warned that Coronavirus may become endemic like HIV and may never go away.

Dr Ryan also said lifting coronavirus lockdown restrictions while the case count is still high could further accelerate the transmission of the virus and may force nations to impose another lockdown.

Extra debt shouldered by governments and companies to steer through the Covid-19 crisis will "come back to haunt us", the boss of the Organization for Economic Cooperation and Development has warned.

The U.S. Federal Bureau of Investigation alongside the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA) have formally accused China of funding and operating hacking cells dedicated to stealing research data on the coronavirus.

In another development, an independent board charged with overseeing billions in U.S. federal retirement dollars announced it would indefinitely delay plans to invest in some Chinese companies.