Gold Trades Under Pressure as Markets Await Fresh Cues to Make Moves

Arslan Butt•Monday, April 27, 2020•1 min read

Gold prices are trading slightly under pressure at the beginning of a fresh week as traders await cues before making their next moves, but remain supported by the prevailing risk-off sentiment in markets. At the time of writing, GOLD is trading at a little above $1,721.

Over the past week, the precious metal gained over 2% of its value over escalating fears about the extent of recession in the global economy as a result of the coronavirus pandemic. Latest estimates predict that the global economy could contract by around 2% this year even as the pandemic rages on and countries continue to impose shutdowns, bringing economic activity to a halt.

Gold is also enjoying some support from a weakness in the US dollar index, which continues to trade close to a three-week high against other major currencies. The US dollar had made some gains over the past few trading sessions over rising expectations for resumption of economic activity in the US.

Although the safe haven appeal of gold remains in focus amid rising uncertainties about global financial markets, the yellow metal has been experiencing weaker demand among retail consumers in the wake of the lockdowns across the world. Soaring prices are also keeping retail consumers hesitant from purchasing physical gold lately, even as it remains one of the best assets for investment.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.