Gold Gains as US-China Tensions Flare Up

Gold is starting Wednesday on a bullish note, climbing higher as US-China tensions return to the spotlight even as markets continue to flare


Gold is starting Wednesday on a bullish note, climbing higher as US-China tensions return to the spotlight even as markets continue to worry about economic recovery in the aftermath of the coronavirus pandemic. At the time of writing, GOLD is trading at a little above $1,887.

During the previous session, US President Donald Trump once again pointed the finger on China at the UN General Assembly for the spread of the coronavirus pandemic globally. In response, China accused Trump of lying, raising tensions between the two world leaders.

While the safe haven appeal strengthens, gains in gold remain limited due to the US dollar making gains against other leading currencies. The US dollar index soared to an eight week high over fears of Europe and Britain reimposing lockdowns due to a second wave of coronavirus.

Gold, meanwhile, made gains after leading policymakers in the US broached the idea of more stimulus aimed at supporting small businesses impacted by the pandemic. In addition, Chicago Fed President Charles Evans warned that the US economy could experience a deeper recession if it did not unleash more stimulus initiatives.

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.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers