Gold Edges Lower as Global Equities, US Dollar Rally - Forex News by FX Leaders
Gold Edges Lower as Global Equities, US Dollar Rally

Gold Edges Lower as Global Equities, US Dollar Rally

Posted Tuesday, March 31, 2020 by
Arslan Butt • 1 min read

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.

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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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