On Friday, gold prices are trading bullish amid rising fears about the coronavirus pandemic and its impact on the global economy even as the US dollar weakens, driving more investors towards the precious metal. At the time of writing, GOLD is trading at a little above $1,967.
Gold is set to post a monthly gain of around 10% so far in July – the highest increase in the yellow metal prices seen since February 2016. The safe haven appeal of gold has been in focus ever since the coronavirus spread all over the world, prompting countries to announce lockdown measures which has significantly impacted their economies and raised recession fears in the global economy.
Gold prices received an additional boost from a weakness in the US dollar amid fresh fears about a second wave of coronavirus infections in the country, which has prompted several states to reimpose lockdown measures. More lockdowns due to the raging pandemic have not only driven a more severe than forecast contraction in the US economy but have economists worried that any rebound towards growth could be delayed until the pandemic is brought under control, possibly after the release of a successful vaccine.
Gold was also in favor over US President Donald Trump’s latest comments about delaying the upcoming presidential elections in the country beyond November 2020 amid the ongoing pandemic. Trump also claimed that the upcoming elections could be “rigged”, which has heightened investors’ appetite for the safe haven metal amid continued uncertainty about the state of the US and the global economy.