Gold Trades Steady as Markets Get Some Relief Over Slowdown in Number of Coronavirus Cases
Early on Wednesday, gold prices are trading steady as the risk sentiment improves slightly over encouraging comments from China expressing hope that the coronavirus outbreak can be contained by April. At the time of writing, GOLD is trading at a little above $1,567.
Although the death toll from the outbreak has crossed 1,100, the number of infected cases rose at the slowest pace since January 31, signaling significant development in efforts to contain the spread of the virus. As the market sentiment improves stock markets are also climbing higher and denting the safe haven appeal of gold.
Gold has also weekend after Fed chairman Powell expressed confidence in the health of the US economy at his recent testimony before the House committee. However, he did highlight potential long term impact of the virus on China’s and global economic growth.
The market sentiment continues to remain cautious the possibility of a slowdown in China’s economy after companies hinted at mass layoffs and heavy loans in a bid to offset the impact of the outbreak. On Tuesday, US President Donald Trump’s national security advisor Robert O’Brien also highlighted the possibility of the US-China phase one trade deal getting affected by the pandemic.
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