Gold Strengthens as US-China Tensions Escalate - Forex News by FX Leaders
Gold prices are back to trading bullish after losing more than 1% during the previous session as markets focus on worsening US-China

Gold Strengthens as US-China Tensions Escalate

Posted Friday, May 22, 2020 by
Arslan Butt • 1 min read

On Friday, gold prices are back to trading bullish after losing more than 1% during the previous session as markets focus on worsening US-China relations again. At the time of writing, GOLD is trading at a little above $1,726.

Despite these gains, gold is set to post a weekly loss, down by 0.8% for the week so far after the risk appetite returned to markets over rising hopes about economic recovery as countries begin easing lockdown measures. However, the focus shifted from the reopening of economies and back to US-China relations after China announced its intention to impose a new national security legislation on Hong Kong, and was cautioned against such a move by US President Donald Trump.

Gold prices also remain supported by recent weak economic data releases and the prospect of a severe recession in the global economy in the wake of the coronavirus pandemic. According to NY Fed President John Williams, economic recovery in the US seems to be getting more distant as more data releases reveal the extent of damage the pandemic has driven across the economy.

Gold’s safe haven appeal remains strong even as markets anticipate leading governments and central banks to pour in more stimulus measures to support their economies through the ongoing crisis.

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