Gold Trades Cautious, Market Sentiment Still Dominated by Coronavirus Concerns

Gold prices are trading weaker at the beginning of a fresh trading week as the US dollar strengthens to an over four-month high over concern

Arslan Butt•Monday, February 17, 2020•1 min read

Gold Trades Cautious, Market Sentiment Still Dominated by Coronavirus Concerns

Gold prices are trading weaker at the beginning of a fresh trading week as the US dollar strengthens to an over four-month high over concerns about the coronavirus’s impact on global economic growth. At the time of writing, GOLD is trading at a little above $1,582.

The US dollar index, DXY, slid a tad lower after touching the highest level seen since October 8, 2019 during the previous session. The dollar shares a negative correlation with gold, and as the dollar strengthens, it becomes more expensive for buyers to invest in the precious metal.

However, gold continues to remain supported by the market sentiment which remains skewed towards the risk-off side as investors worry about the economic impact of the outbreak on China as well as on the rest of the world. Latest data from Japan shows a contraction in its GDP while Singapore has already downgraded the growth forecasts for its economy in 2020 on account of the outbreak.

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ABOUT THE AUTHOR See More

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.