Gold Set For Largest Weekly Decline in Nearly Seven Years - Forex News by FX Leaders

Gold Set For Largest Weekly Decline in Nearly Seven Years

Posted Friday, March 13, 2020 by
Arslan Butt • 1 min read

Gold prices are trading weaker early on Friday despite the reigning risk-off sentiment weighing on markets as investors covered margin calls amid continued drop in global equities. At the time of writing, GOLD is trading at a little above $1,564.

Gold has lost around 6.7% of its value so far this week and is all set to post the largest weekly decline seen since June 2013. Even though the safe haven appeal of gold remains in focus, the continued sell-off in global equities would put pressure on investors to liquidate their positions in the yellow metal to meet margin calls.

Ending days of uncertainty, the ECB unveiled stimulus measures on Thursday but kept interest rates on hold. Meanwhile, the US is also expected to confirm its fiscal stimulus efforts later today as lawmakers approached agreement on the proposed steps.

Gold prices were driven lower amid a strengthening in the US dollar over its increased preference as the most liquidi currency in markets. As we know, gold shares a negative correlation with the dollar and whenever the dollar gains, gold becomes more expensive for holders of other currencies to purchase.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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