Gold Prices Trade Steady as Risk Appetite Improves, Pandemic Weighs

Gold prices are trading somewhat steady as worries about the economic impact of the coronavirus pandemic were balanced by an improvement in

Written by: Arslan Butt • Wednesday, August 26, 2020 • 1 min read

• Last updated: Wednesday, August 26, 2020

Gold Prices Trade Steady as Risk Appetite Improves, Pandemic Weighs

Early on Wednesday, gold prices are trading somewhat steady as worries about the economic impact of the coronavirus pandemic were balanced by an improvement in the risk sentiment in global markets over the possibility of US-China trade tensions easing. At the time of writing GOLD is trading at a little above $1,926.

After a phone discussion between senior officials from the US and China, both countries confirmed that they were committed to implementing the terms of the phase one trade deal. Their renewed interest in complying with the deal signed earlier this year gave hope that trade tensions between the two world leaders could reduce in the near future.

As part of the interim trade agreement, China is expected to increase imports of US manufactured products and farm goods. News of positive developments between the US and China helped drive a risk-on sentiment in global financial markets and dented the demand for the safe haven gold.

Meanwhile, gold got some support from weak economic data releasing from the US during the previous session. Consumer confidence in the country fell to the lowest levels in over six years as a result of soaring unemployment, which could further impact the US economy severely.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

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.