Gold Edges Higher to Touch 15-Week High – Risk-Off Sentiment Effect
Arslan Butt • 1 min read
GOLD prices have jumped to a 15-week high as the sentiment continues to deteriorate in financial markets over escalating trade tensions. At the time of writing, gold is trading at a little above 1333.
On Wednesday, the precious metal managed to edge higher over weaker than expected ADP employment figures which further weakened the dollar and increased safe haven appeal. The unofficial ADP employment figure sets the tone for the upcoming NFP data which is due for release on Friday. Expectations are that it would follow the ADP and reveal soft employment numbers.
In addition, trade tensions continue between US and China on the one hand, and the US and Mexico on the other. On both fronts, there have no optimistic news suggesting resolving of issues in the near future.
The Federal Reserve has also hinted that it would intervene in markets if required, raising hopes for an interest rate cut sometime soon. These factors continue to keep gold in demand for now.