06.07.202010:51:00UTC+00Gold Subdued Amid Equity Rally

Gold prices were subdued on Monday and global equities rallied as signs of an economic rebound in China as well as hopes of more stimulus measures helped offset worries over a spike in Covid-19 cases in some U.S. states and other parts of the world.

Spot gold edged down marginally to $1,775.48 per ounce, while U.S. gold futures were down 0.3 percent at $1,784.65.

China's benchmark Shanghai Composite Index jumped as much as 5.71 percent today, marking the biggest advance since 2015 amid positive commentary on the market from state media, with the Securities Times saying that fostering a "healthy" bull market after the pandemic is now more important to the economy than ever.

The economy is recovering while its capital markets are attracting money, setting the scene for a healthy bull market, the official China Securities Journal said in an editorial.

European markets followed the positive trend set in Asia overnight and U.S. stock futures advanced on hopes the world's second-largest economy will lead a recovery from the coronavirus crisis.

Economic recovery optimism is in full swing, with a measure of Eurozone investor confidence index improving to -18.2 in July from -24.8 in June.

Retail sales activity also rebounded strongly in the euro area in May, U.K. construction activity surged back to growth in June and German factory orders advanced 10.4 percent month-on-month in May, boosting optimism on economic recovery.