Gold Prices Climb Higher Over Worries About US’s Economic Recovery
Arslan Butt • 1 min read
Gold prices have made some gains after the safe haven appeal of the precious metal got triggered on the release of the Fed’s latest meeting’s minutes which highlighted concerns about the uncertainty of economic recovery in the US following the coronavirus pandemic. At the time of writing, GOLD is trading at a little above $1.951.
Minutes of their latest meeting indicate that the US central bank is likely to undertake more dovish measures to prop up the economy that has been struggling in the wake of the pandemic-driven lockdowns. Employment levels are falling while consumers have turned cautious about spending and international trade is also under strain as the pandemic rages on across almost the whole world.
Gold prices received an additional boost over developments related to US-China tensions, after the Trump administration suspended and/or terminated three bilateral agreements with Hong Kong after China imposed a new national security law. Even amid the coronavirus crisis, the threat of escalating tensions between the two world leaders looms as a possible reason for delaying economic recovery.
However, gold prices faced slight pressure due to an upward climb in the US dollar’s value. The greenback strengthened on the back of a gain in US Treasury yields, which in turn, also make it more expensive to invest in gold.