08.04.202011:03:00UTC+00Gold Edges Higher On Pandemic Worries

Gold prices rose on Wednesday, though a firmer dollar and profit taking after recent gains capped upside price momentum.

Spot gold edged up 0.2 percent to $1,650.72 per ounce, after having climbed to its highest level since March 10 on Tuesday at $1,671.40. U.S. gold futures were up 0.25 percent at $1,687.60.

Coronavirus worries returned to the fore as new deaths rose to 743 in Spain and infections climbed by 5,400 after five days of declines.

New cases dropped to a level not seen since the early weeks of the outbreak in Italy, while France became the fourth country to report a death toll of more than 10,000.

The 24-hour death toll from the novel coronavirus surpassed 1,850 in the United States, a record high for any country in a single day.

Virus-stricken British Prime Minister Boris Johnson remained in intensive care and is "receiving standard oxygen treatment and breathing without any assistance," a spokesman reportedly said.

The number of confirmed infections exceeded 1.38 million globally while the death toll crossed 81,400.

Investors also fretted about a deepening recession. The German economy will shrink by nearly 10 percent in the second quarter as the coronavirus paralyses the country, six leading research institutes warned today.

The Bank of France said the French economy has entered recession with an estimated 6 percent drop in the first quarter of this year compared to the previous three months.

Every two weeks under lockdown could lead the French annual economic activity to shrink by 1.5 percent, the Bank de France said in a statement.

Meanwhile, Eurozone finance ministers failed to agree on the region-wide stimulus measures following 16 hours of talks. The meeting is suspended until Thursday.