Early on Friday, gold prices are trading slightly bearish, losing ground as the US dollar continues to strengthen, but still close to the highest levels in over a week as markets worry about economic fallout of the coronavirus pandemic. At the time of writing, GOLD is trading at a little above $1,722.

Despite the slight dip in early trading, gold is all set to post a weekly gain of around 2.4% so far this week, following the unexpected crash in crude oil prices as the market sentiment continues to be dominated by worries about the pandemic and the resultant economic downturn. Gold, however, eased after the US House of Representatives approved an additional $484 billion worth of stimulus, helping support the greenback.

So far, the US government has committed to nearly $3 trillion worth of stimulus to protect the economy in the wake of the coronavirus crisis. Meanwhile, other countries are looking at ways to increase their stimulus efforts, helping support the safe haven appeal of gold.

In addition, weak economic data releases from around the world have also highlighted the increasing likelihood of a recession in the global economy. PMI figures released in the previous session revealed a contraction in manufacturing and services sectors around the world, while Britain’s consumer confidence and jalana Japanese inflation also came in weak and supported the risk-off sentiment in markets.