Gold Rises Amid Risk-off Sentiment in Markets - Forex News by FX Leaders
Gold Rises Amid Risk-off Sentiment in Markets

Gold Rises Amid Risk-off Sentiment in Markets

Posted Wednesday, May 13, 2020 by
Arslan Butt • 1 min read

Early on Wednesday, gold prices are strengthening amid the prevailing risk-off sentiment in markets over rising fears about a second wave of coronavirus cases across some countries, especially China and South Korea. At the time of writing, GOLD is trading at a little above $1,702.

The market sentiment deteriorated and sent equities lower even as health experts warned about reopening the US economy too soon and facing a possible resurgence in the number of infections. This boosted the safe haven appeal of gold and sent prices higher.

Gold has also benefited from a weakness in the US dollar ahead of Fed chairman Jerome Powell’s speech later during the day. Markets are eager to hear Powell’s comments on the possibility of the US central bank pushing rates into negative territory amid the escalating coronavirus crisis.

Expectations for more stimulus measures in the US are also supporting the yellow metal’s bullishness lately. With several Fed officials signalling that the US economy could take longer to recover, economists are calling for more stimulus programs to help pull the economy out of the impending recession.

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