⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

Gold Prices Ease After Crossing $1,700 for First Time Since Late 2012

At the start of a brand new trading week, gold prices shot past the key $1,700 level for the first time in over seven years over rising fears of the coronavirus outbreak even as Saudi Arabia stunned oil markets with its decision to increase crude production from April. At the time of writing, GOLD is trading at a little above $1,675.

The safe haven appeal of gold surged as Asian stocks fell lower as a result of the continued risks of the coronavirus outbreak while futures contacts for SPX declined by more than 4% in off-hours trading over the weekend. In addition, the sentiment in global markets has soured further during the Asian session after the Japanese economy contracted by more than economists’ forecasts during Q4 2019, raising the risks of recession.

Over the weekend, Saudi Aramco announced that it would increase crude production and cut selling prices starting in April, sending crude oil prices as well as commodity currencies on a bearish slide, further boosting the risk-off sentiment in markets. Gold prices were also boosted by economic data from China which revealed a steep contraction in Chinese exports as well as a decline in imports during January and February 2020 as a result of the coronavirus.

The latest data indicates that the Chinese economy is likely to have contacted at a faster pace than previously estimated.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
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