Gold Supported as Economic Recovery Worries Back in Focus

Gold is trading bullish early on Thursday after having fallen sharply during the previous session, supported by a weakness in the US dollar

Gold Supported as Economic Recovery Worries Back in Focus

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.

ABOUT THE AUTHOR See More
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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