Gold Prices Edge Higher as Safe Haven Appeal Back in Focus
Arslan Butt • 1 min read
Gold continues to trade bullish early on Monday as investors turn to its safe haven appeal amid escalating fears about the coronavirus pandemic even as the US dollar trades close to fortnightly lows. At the time of writing, GOLD is trading at a little above $1.615.
Gold shares a negative correlation with the dollar, which has been experiencing weakness in recent sessions over the worsening situation surrounding the pandemic in the US. Over the weekend, the US overtook China with the maximum number of coronavirus cases even as the death toll from the virus also continues to soar.
Despite several stimulus measures being announced by governments and central banks worldwide, the risk of a recession in the global economy continues to increase as a result of the impact of the pandemic. This has caused markets to trade with a risk-off sentiment and move towards safe haven assets like gold amid higher economic uncertainty.
Last week, the US government officially passed the $2 trillion fiscal stimulus package, but it has yet to make much of an impact on the market sentiment. Amid the growing crisis, the EU is also expected to explore more measures in the coming days to protect its economy from the impact of the coronavirus pandemi