Gold Steady as Risk-off Sentiment Supports Dollar, Sends Equities Lower - Forex News by FX Leaders
Gold Steady as Risk-off Sentiment Supports Dollar, Sends Equities Lower

Gold Steady as Risk-off Sentiment Supports Dollar, Sends Equities Lower

Posted Wednesday, April 22, 2020 by
Arslan Butt • 1 min read

Gold prices are trading steady early on Wednesday amid the prevailing risk-off sentiment in global financial markets, even as the US dollar holds strong. At the time of writing, GOLD is trading at a little above $1,682.

In the previous session, gold lost around 2% of its value amid a sudden rush for liquidity among traders following the crash in crude oil prices. For now, gold is experiencing some pressure after the moves strengthened the US dollar, which shares a negative correlation with the yellow metal.

However, gold prices remain supported over the decline in equity markets as investors feared the impact of the falling crude oil prices and the economic fallout from the raging pandemic worldwide. Amid rising worries about a deep economic recession globally, investors are worried about commodity prices crashing in the near future.

Gold also enjoyed some support after the US Senate approved an additional $500 billion worth of aid for hospitals and the economy in the wake of the escalating coronavirus crisis across the country. The US remains the worst affected in terms of the number of cases, even as citizens break out on protests against the extended shutdowns in the country.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of