⚡Crypto Alert : Start Trading Cryptos with 0 Fees - Click Here

Gold Weakens as Market Sentiment Calms Down, Dollar Makes Gains

Early on Tuesday, gold prices are trading bearish after weakening by around 1% in the previous session as a result of a strengthening in the US dollar and as a result of China’s measures to protect its economy in the wake of the coronavirus outbreak. At the time of writing, GOLD is trading at a little above $1,575.

On Monday, the market sentiment also received a bit of relief as investors felt confident about China taking active steps towards containing the spread of the virus and protecting its economy simultaneously. Over the weekend, China’s central bank PBOC injected additional liquidity into the markets to compensate for any potential weakness in the economy due to the shutdown caused by the outbreak.

While the improved market sentiment dented the safe haven appeal of gold and weakened it, the precious metal fell further on account of a stronger US dollar. The greenback gained around 0.44% of its value on Monday following a strong rebound in manufacturing activity after five consecutive months of contraction.

The US ISM Manufacturing PMI soared to 50.9 while the GDP grew at 2.4% during January 2020, supporting the bullishness in the dollar and sending gold prices lower as a result.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
🔒 OPEN A TRADING ACCOUNT