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Gold Weakens as US FDA Allows Emergency Use of Plasma Therapy

At the start of a fresh trading week, gold prices are sliding lower as the risk sentiment in markets received a boost after the US FDA approved plasma therapy as a treatment option for coronavirus patients. At the time of writing, GOLD is trading at a little above $1,932.

Over the weekend, the US drug regulatory authority permitted the use of blood plasma therapy from recovered patients as an emergency treatment option after keeping it on hold. A day prior to the FDA’s authorization, US President Donald Trump had accused the FDA of hampering the implementation of treatment options and vaccines for political reasons.

Gold prices are expected to see some movement later this week after Fed chair Jerome Powell presents the central bank’s monetary policy at the Jackson Hole symposium. If the Fed remains dovish for longer, it could support the safe haven appeal of gold and send prices higher.

As a result of the ongoing coronavirus pandemic, central banks worldwide including the Fed have announced various stimulus efforts to prop up their economies. With the pandemic still raging on around the world, the economic recovery could take longer, forcing them to continue with easing measures and keeping gold prices bullish in the coming months.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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