Gold Weakens But Set to Post Weekly Gain
Arslan Butt • 1 min read
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.