Gold Set For Worst Performing Week in Over a Month
Gold is on the rise early on Friday but looks set to post the worst weekly performance in more than a month as a result of a stronger dollar
Gold is on the rise early on Friday but looks set to post the worst weekly performance in more than a month as a result of a stronger dollar. At the time of writing, GOLD is trading at a little above $1,871.
Over the past few sessions, gold prices weakened as the US dollar made gains against its major rivals over worries of a resurgence in coronavirus cases around the world and countries looking to reimpose restrictions. So far this week, the US dollar index DXY, which shares a negative correlation with the yellow metal, has gained around 1.5%.
Prices also came under pressure as China’s net gold imports through Hong Kong dipped during August. However, total imports have risen to the highest level in five months as domestic demand picks up in China.
Gold, however, enjoys support over worries about the economic fallout from the pandemic. The recent spike in cases and worries of a second wave prompting further lockdowns keep the safe haven appeal of the precious metal strong as economic recovery could get further delayed.
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