Gold Edges Lower as Global Equities, US Dollar Rally

Early on Tuesday, gold prices are trading somewhat steady after pulling back slightly, but continue to trade in a narrow range over continued worries about the economic impact of the coronavirus pandemic. At the time of writing, GOLD is trading at a little above $1,615.

With global equities rallying for a second consecutive session and the US dollar gaining strength, gold has lost some of its safe haven sheen and edged lower. However, the risk sentiment continues to be dominated by latest developments surrounding the coronavirus crisis, with a higher uptick in the number of infections and death toll globally.

The heightened uncertainty about the extent of economic harm the pandemic can drive in the global economy is supporting the demand for the safety of the US dollar, which shares a negative correlation with gold. Notwithstanding Tuesday’s weakness, gold is all set to post a quarterly gain of about 6.5% for Q1 2020, gaining for the sixth consecutive quarter over worries about an impending recession in the global economy due to coronavirus.