Gold Prices Trade Steady as Risk Appetite Improves, Pandemic Weighs
Arslan Butt • 1 min read
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.