Gold Steady Near One-Month High as Focus Stays on Economic Impact of Coronavirus Pandemic
Arslan Butt • 1 min read
Gold prices continue to trade steady, close to a one-month high, at the start of a fresh trading week as markets continue to focus on the latest developments surrounding the coronavirus pandemic and its potential impact on the global economy. At the time of writing, GOLD is trading at a little above $1,682.
The safe haven appeal of gold remains strong amid rising worries of a deep economic recession worldwide in the wake of the escalating crisis over coronavirus. Meanwhile, Fed’s latest round of stimulus measures are also supporting the recent bullishness in gold prices.
Late last week, the US central bank unveiled an additional $2.3 billion worth of financial aid for local governments and small and medium sized businesses directly impacted by the shutdown driven by coronavirus. Meanwhile, the number of people claiming unemployment benefits continue to rise to record levels in the US, further heightening risks to the US economy.
Economic data from other parts of the world also point to signs of gloom while central banks and governments roll out more stimulus efforts to offset economic risks across the world. The latest devolopment came from the EU, where finance ministers agreed on a 0.5 trillion euro economic package.