Gold Under Pressure as Markets Focus on Economic Recovery
Arslan Butt • 1 min read
Gold prices are weakening early on Wednesday as the risk appetite in global financial markets improves as traders focus on economic recovery as countries ease lockdown measures and resume operations around the world. At the time of writing, GOLD is trading at a little above $1,725.
Equity markets around the world are trading upbeat amid rising hopes that as economies reopen, the global economy can move towards recovery after being impacted severely by the coronavirus pandemic. In addition, hopes for more stimulus efforts by governments and central banks around the world are also keeping the safe haven appeal of gold in check, as such efforts could further propel economic recovery.
Gold has also come under pressure over expectations that a vaccine for coronavirus could be ready soon. Several companies around the world are progressing with trials even as a senior US Army vaccine researcher expresses hopes for a vaccine to be ready the year-end.
Gold prices, however, enjoy some support from the ongoing protests and unrest across the US in the wake of the homicide of George Floyd on police custody. Protests against his death have raged on across several US cities for over a week now and prompted President Trump to threaten to call in the military to quell the unrest.