Gold Inching Higher, Recovering After Friday’s Losses
Arslan Butt • 1 min read
Early on Monday, gold is climbing higher after sliding nearly 1% lower on Friday amid rising hopes of central banks turning dovish soon. At the time of writing, GOLD is trading at a little above $1,509.
On Friday, Fed Chairman Jerome Powell indicated that the central bank will act as needed to support the US economy, signaling possible rate cuts in the near future. Gold is also climbing higher over White House Chief Economic Adviser’s comments that the upcoming trade talks between the US and China may not make much progress towards a trade deal and that the trade dispute could drag on for years.
A range of fundamentals from around the world are offering additional support to gold prices, with China’s exports registering a surprising decline over the ongoing trade war while Japan’s Q2 GDP growth came in lower than the prelim reading. Global economic weakness and the trade war continue to dominate the market sentiment, and both factors are helping keep gold’s safe haven appeal high among traders and investors.