Demand for safe havens rose and global equity markets turned
south on Friday after Apple Inc said it would temporarily shut 11 U.S. stores
as coronavirus cases continue to rise, rekindling fears of a deadly second wave
of the pandemic.
News of Apple’s move involving stores in Florida, Arizona,
South Carolina and North Carolina doused hopes for a quick economic recovery
that had spurred risk appetite earlier in the day, driving up European and U.S.
stocks about 1%.
The dollar rebounded from earlier losses and was on track
for its best weekly gain in a month, while gold rose more than 1%, with futures
settling above the technical barrier of $1,750 an ounce. Treasury yields also
fell on safe-haven demand.
Apple’s decision portends more restrictions coming back as
coronavirus cases increase and the reopening process stalls, said Edward Moya,
senior market analyst at currency brokerage OANDA.
The $1,750 mark “has been a big barrier for gold and speaks
strongly that the safe-haven trade is not going away anytime soon,” Moya said.
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