Gold Gains as Markets Worry About US-China Tensions, Economic Recovery

Gold prices are trading somewhat steady after rising to the highest level seen in nearly three weeks during the previous session over

Arslan Butt•Friday, May 15, 2020•1 min read

Gold Gains as Markets Worry About US-China Tensions, Economic Recovery

Gold prices are trading somewhat steady after rising to the highest level seen in nearly three weeks during the previous session over worries about economic recovery after the coronavirus pandemic and escalating US-China tensions. At the time of writing, GOLD is trading at a little above $1,732.

The market sentiment soured over rising concerns that the relationship US and China could be heading towards strain as Trump continues to hold China responsible for the ongoing pandemic and threatens to call off the phase one trade deal. This has helped support the safe haven appeal of gold and sent prices higher lately.

In addition, gold has also benefited from caution in markets about economic recovery after resuming activity. Recent economic data releases from around the world have reinforced economists’ warnings that economic recovery after the coronavirus crisis could take a lot longer than previously anticipated.

The risk-off sentiment in global markets sent equities lower for the third consecutive day, as a result of weak data releases and rising expectations for additional stimulus measures being rolled out by central banks around the world. Meanwhile, US unemployment claims fell to 2.981 million for the previous week, but still remain on the higher side on account of the ongoing shutdowns.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

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.