Gold Trades Bullish as US Dollar Dips, Sentiment Still Fragile

Gold is trading somewhat bullish on Thursday as the US dollar weakens in anticipation of the latest weekly jobless claims figure due later today. At the time of writing, GOLD is trading at a little above $1,648.

Gold is climbing back towards the one-month high that it had previously reached on Tuesday as the dollar dipped by 0.1% against other major currencies. The Greenback and the yellow metal share a negative correlation with each other – when the dollar weakens, gold becomes more affordable to buy for holders of non-dollar currencies.

Meanwhile, the safe haven appeal of gold remains in focus over the continued coronavirus pandemic. New York, the epicenter of the pandemic in the US, witnessed the highest single-day rise in coronavirus-related deaths on Wednesday, escalating fears about the pandemic and its impact.

The situation remains just as grim across Europe even though the rise in cases slowed down in recent days. Markets also remain concerned about the lack of adequate efforts by EU leaders towards rolling out a common response to tackle the virus across the most affected member countries.