HSI Continue Retreat, Gold Hits A Record High

Hong Kong stocks ended Monday's morning session slightly lower, extending last week's losses as traders fret over the global spread of the virus as well as slow progress on a new US stimulus.

The Hang Seng Index dipped 0.1 percent, to 24,683.

On the mainland, the Shanghai Composite Index edged up 0.1 percent, to 3,199, while the Shenzhen Composite Index gained 0.2 percent, to 2,143.

Sydney was up 0.2 percent, while Singapore and Jakarta each added 0.3 percent, though Seoul climbed more than 1 percent and Taipei jumped more than 2 percent. Tokyo and Mumbai drifted lower.

Gold hit a record high as investors rushed into the safe-haven on concerns about China-US tensions, a spike in virus infections around the world and a lack of progress on a new stimulus bill in Washington.

After months of healthy rallies across equity markets, fuelled by trillions of dollars in government and central bank support, traders are beginning to step back as they weigh the long-term economic impact of the coronavirus.

With vast monetary easing measures put in place by the Federal Reserve pushing the dollar lower against most other currencies, gold is flying, hitting an all-time high of US$1,944.71, well above its previous record of US$1,921.18 seen in 2011.

Eyes are on the Fed's next policy meeting this week, with some predicting further measures to boost the economy – possibly negative interest rates – that could put more pressure on the US dollar and send bullion above US$2,000.

There are also concerns that a worse-than-forecast reading on second-quarter US gross domestic product could spark another dollar sell-off.

While the weak dollar has been a key catalyst for the metal's advance, gold has also been boosted by its attractiveness as a haven in times of turmoil with China-US relations souring by the day. (AFP)

______________________________