Gold Weakens as US Dollar Gains on Positive NFP Figures

Gold Weakens as US Dollar Gains on Positive NFP Figures

Posted Monday, August 10, 2020 by
Arslan Butt • 1 min read

Gold prices started the new week on a bearish note, weakening as a result of a strengthening in the US dollar on the back of better than expected NFP data which released during the previous session. At the time of writing, GOLD is trading at a little above $2,031.

US non-farm payrolls registered an increase by 1.763 million during July, causing gold to lose 2% of its value and retreat lower after touching a record high of over $2,072 on Friday. Gold shares a negative correlation with the US dollar, which made some gains as a result of encouraging economic data, supporting expectations of economic recovery in the US.

The yellow metal has gained around 33% so far this year due to rising uncertainty surrounding the coronavirus pandemic and its impact on the global economy. The safe haven appeal of gold has received additional support as a result of various stimulus efforts being unveiled by governments and central banks worldwide, in a bid to offset damage caused by the pandemic on economies.

Gold prices are also expected to see some movement in the coming days as a result of US-China tensions after US President Donald Trump announced a ban on two popular Chinese mobile apps. However, US-China tensions also cause the US dollar to strengthen, which controls gains in the precious metal.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Safe havens such as Gold and the JPY have been taking advantage of the financial troubles with the ban king system and lower FED rate odds
16 hours ago
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments