Gold Strengthens as China Data Disappoints Markets
Arslan Butt • 1 min read
Gold prices are trading bullish for the third consecutive day on Friday as markets continue to focus on the economic fallout from the global coronavirus pandemic, while disappointing economic data releases from China support the safe haven metal. At the time of writing, GOLD is trading at a little above $1,952.
Despite raking up gains, gold is set to post a weekly decline for the first time since June, falling by almost 4% so far this week. Gold fell below record highs above $2,000 over the past few sessions following the release of encouraging data pointing to signs of economic recovery in some countries after lifting lockdown measures.
Gold, means, continues to enjoy support from the stalemate in US Congress over the coronavirus relief bill, with negotiations failing to reach conclusion even after several weeks. On Wednesday, President Donald Trump remarked that he was not in favour of Democrats’ plans for including funds for US Postal Service and infrastructure for elections in the upcoming bill.
The safe haven appeal also received a boost after Chinese retail sales and industrial output figures came in below economists’ expectations, hinting at worries that the recovery in China after the pandemic has slowed down. China has emerged out of lockdown and is working its way back to normalcy but domestic demand continues ro remain weaker as a result of increased caution among consumers.