Gold Supported as Economic Recovery Worries Back in Focus
Arslan Butt • 1 min read
Gold is trading bullish early on Thursday after having fallen sharply during the previous session, supported by a weakness in the US dollar and fears about the impact of the coronavirus on the global economy. At the time of writing, GOLD is trading at a little aboe $1,942.
Gold gained after the US dollar weakened on the back of disappointing economic data releases on Wednesday, with the number of private payrolls increasing at a slower than expected pace for the second consecutive month during August. The report highlighted that the labor market in the US is yet to recover even after the lifting of lockdowns.
The safe haven appeal of gold was also triggered by the release of the Fed’s latest Beige Book report, which indicated that economic recovery was uneven and somewhat sluggish as a result of a resurgence in the number of infections across some hotspots in the US. Expectations for a rebound towards economic growth in the summer have been hampered as the pandemic still rages on across the country and several other parts of the world.
Later today, gold prices could see considerable movement on the release of PMI data from across Asia, Europe and the US. The data will be in focus as it will give an insight into the pace of economic recovery in key markets in the wake of the ongoing coronavirus crisis.