Gold Bullish Above Seven-Year High as Markets Fear Economic Impact of Coronavirus
Arslan Butt • 1 min read
Gold continues to trade bullish after soaring to a seven-year high during the previous session over rising worries about a recession in the global economy due to the coronavirus pandemic. At the time of writing, GOLD is trading at a little above $1,719.
Even though US stock futures experienced slight gains on Monday, the safe haven appeal of gold remains in focus as markets fear the economic impact of the pandemic and anticipate recovery to take longer than previously forecast. In the US alone, the government is busy working out more ways to support the economy with additional financial rescue measures even as it faces the risk of a ballooning budget deficit this year.
Despite economic activity being hampered by the ongoing shutdowns across numerous countries, there seems to be no relief in the way of easing in the rise of infections and death toll due to coronavirus so far. While Trump signals his interest in restarting the economy soon, public health experts have cautioned that this would not be possible anytime soon unless the rise in infections stabilizes.
Meanwhile, in Britain, PM Boris Johnson, who has recently returned after being hospitalized, has also indicated that the lockdown is expected to continue for some more time. Gold is likely to remain supported over the prevailing risk-off sentiment in markets amid escalating fears about worsening economic conditions around the world as a result of the lockdown measures and the pandemic.