Gold Prices Dip as Markets Look Forward to Positive Developments Around the Pandemic
Arslan Butt • 1 min read
Gold prices are trading somewhat bearish on Thursday, sliding lower, as the risk appetite returns to global markets as traders eagerly await the reopening of some economies after the coronavirus crisis. At the time of writing, GOLD is trading at a little above $1,710.
Markets are looking forward to signs of improvement in the situation after latest trials of a drug for COVID-19 yielded some promising results, even as some nations look to ease shutdown restrictions and resume some level of economic activity. This has helped diminish the safe haven appeal of gold and driven its price lower.
The risk-on sentiment in markets has also sent global stock markets higher and helped support a rise in crude oil prices. After several weeks of uncertainty, markets are looking forward to countries working towards economic recovery.
Although the Fed hinted at the possibility of implementing further easing measures to prop up the US economy and sent the dollar lower, gold prices failed to receive a boost as markets focused on positive developments surrounding the pandemic. Later today, the yellow metal could see some moves following the ECB meeting in case it also announces additional easing measures in the wake of the crisis.