2020.06.1710:43:00UTC+00Gold Prices Ease As Dollar Firms Up

Gold prices fell on Wednesday as the dollar firmed up against its rivals on optimism about a quick economic recovery and amid news that a cheap and widely used steroid reduced death rates among the most severely ill Covid-19 patients.

Spot gold declined 0.7 percent to $1,715.35 per ounce, while U.S. gold futures were down 0.9 percent at $1,721.15.

The dollar held firm after data showed U.S. retail sales rebounded by a record 17.7 percent in May and Fed Chair Powell's congressional testimony echoed the tone expressed after last week's Fed meeting.

Meanwhile, the World Health Organization (WHO) said it was moving to update its guidelines after initial clinical trial results showed dexamethasone, a steroid, can cut death rates by around a third among the most severely ill covid-19 patients.

Concerns stemming from a surge in coronavirus infections in Beijing capped gold's downside to some extent.

Beijing reported 31 new cases of novel coronavirus for June 16, four more than the day before and taking the total number of cases to 137 in six days.

Elsewhere, South Korea confirmed 43 more coronavirus cases in 24 hours, Brazil reported a record 34,918 new infections and India registered over 10,000 new Covid-19 cases for the fifth day in a row, while new coronavirus infections hit record highs in six U.S. states on Tuesday.