Gold Slips Lower as Market Sentiment Receives a Boost as Countries Emerge Out of Lockdown
Arslan Butt • 1 min read
On Tuesday, gold prices are trading somewhat bearish, sliding lower as markets look forward to resumption of economic activity across several parts of the world after weeks of lockdown. At the time of writing, GOLD is trading at a little above $1,739.
Gold prices have come under pressure as countries ease lockdown measures and permit factories and workplaces to reopen, raising hopes that economic recovery could soon begin. Expectations for restarting of economic activity has boosted the risk appetite in global markets, sending stock markets higher while denting the safe haven appeal of gold.
However, losses in gold remain limited as US-China tensions and ongoing protests in the US continue to remain in focus. On Monday, Bloomberg reported that China has ordered state-owned companies to stop importing some farm goods from the US, potentially endangering the phase one trade deal signed earlier this year.
Gold’s losses also remain limited on account of a weakness in the US dollar, which has boosted the attractiveness of the yellow metal among holders of non-dollar currencies. Meanwhile, protests rage on in the US, denting hopes of economic recovery in the country which reopened recently, after President Trump warned that he could consider deploying the military if states are unable to bring the situation under control.