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.