Gold Slips Lower as Market Sentiment Receives a Boost as Countries Emerge Out of Lockdown

Gold prices are trading somewhat bearish, sliding lower as markets look forward to resumption of economic activity across several parts of

Gold Slips Lower as Market Sentiment Receives a Boost as Countries Emerge Out of Lockdown

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.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
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.

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