Gold prices continue their upward climb early on Thursday as markets continue to fear the extent of economic recession being driven by the coronavirus pandemic around the world. At the time of writing, GOLD is trading at a little above $1,714.
Gold continues to make gains over heightened safe haven appeal even as the US dollar strengthens against its major peers in the wake of the escalating economic uncertainty plaguing global financial markets. Recent economic data releases from the previous session are pointing to signs of a severe slowdown in the US economy as a result of the shutdowns driven by the pandemic, lending support to gold’s bullish trade.
Meanwhile, economic data from other countries also paint an equally grim picture, with business confidence in Japan plummeting to multi-year lows while retail sales in Britain experience the steepest decline ever recorded. The risk-off sentiment in markets was further boosted after Trump announced that he was pulling US’s funding for WHO in the wake of the coronavirus crisis.
Stock markets have been tumbling over fears that the coronavirus lockdown could drive a deeper recession in the global economy than the Great Depression of 1930s. Worries about the extent of the economic downturn are keeping gold prices supported at multi-year highs lately.