2020.07.2310:37:00UTC+00Gold Gains Further As US-China Tensions Mount

Gold prices rose on Thursday and hovered near nine-year highs reached the previous day, driven by an escalation in U.S.-China tensions and expectations of more stimulus as global coronavirus cases grow by more than a million a week.

Spot gold rose 0.6 percent to $1,882.57 per ounce, while U.S. gold futures were up 0.9 percent at $1,881.40 per ounce.

The Trump administration's decision to close China's consulate in Houston over concerns about spying has sent U.S.-China relations to a new low.

China vowed to retaliate and said the unilateral closure within a short period of time is an unprecedented escalation of its recent actions against China.

Meanwhile, U.S. deaths from the coronavirus rose by more than 1100 for a second day in a row Wednesday, while total cases neared 4 million.

Brazil's President Jair Bolsonaro again tested positive for the novel coronavirus, but the head of state was nevertheless "in good condition", the president's office said.

The three worst-hit countries- the U.S., Brazil, and India-account for nearly half of all confirmed cases globally and more than 40 percent of fatalities.

Researchers are making "good progress" in developing vaccines against Covid-19, but their first use cannot be expected until early 2021, a World Health Organization (WHO) expert said.

On the stimulus front, U.S. Senate Majority Leader Mitch McConnell is expected to put forward the Republican version of another comprehensive stimulus relief package-including a second stimulus check-later today.