Gold Set for its Biggest Weekly Gain in Over Three Years

Posted Friday, August 9, 2019 by
Arslan Butt • 1 min read

Gold is all set for its best-performing week as it remains firmly above the $1,500 level on Friday and climbing higher. At the time of writing, GOLD is trading a little above $1505, marking a 4.6% gain so far this week.

Rising global trade tensions have the markets concerned that more central banks around the world will turn dovish and cut rates or announce monetary easing to tackle potential fallout from external risks. Over the past few days, central bank of New Zealand, Thailand and India have turned dovish and cut interest rates. Meanwhile, earlier today, we saw the RBA also insist that interest rates will remain low for some time to come.

With regards to the US-China trade war, there may be more trouble brewing for Huawei with the US government purportedly considering delaying issuing licenses to American companies looking to resume their business with the Chinese tech leader. Even recent economic data releases from both US and China have been unable to stop gold’s bullish run lately as the focus stays entirely on the risk-off sentiment due to the trade war.

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