Gold Weakens But Set to Post Weekly Gain

Gold prices have turned bearish and are weakening early on Friday after rising sharply during the previous session, driven lower by a

Gold Weakens But Set to Post Weekly Gain

Gold prices have turned bearish and are weakening early on Friday after rising sharply during the previous session, driven lower by a stronger US dollar. At the time of writing, GOLD is trading at a little above $1,940.

Despite the present weakness, gold is set to post a weekly gain as fears about the economic fallout from the coronavirus pandemic supported its safe haven appeal. So far this week, the yellow metal has gained around 0.8% of its value.

The US dollar gained strength against major rivals after dropping against the Euro during the previous session, sending gold prices lower. Gold shares a negative correlation with the dollar, as a stronger dollar makes it more expensive for holders of other currencies to purchase the precious metal.

Gold also remains supported over a fragile risk sentiment which sent stock markets lower during the previous session. Later today, the safe haven metal could see some moves on the release of UK’s GDP and US CPI figures.

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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