Gold Steady as Risk-on Sentiment Offsets Weaker Dollar
Arslan Butt • 1 min read
Gold prices are holding steady near a two-week high early on Tuesday, supported by a weaker dollar even as the risk sentiment in markets picks up. At the time of writing, GOLD is trading at a little above $1,909.
The US dollar dipped and the risk-on sentiment in markets was triggered after US President Donald Trump was discharged from the hospital and returned to the White House. Markets were trading cautious since late last week on the news that Trump and his wife had tested positive for coronavirus, but news of his discharge eased some tensions.
While Trump’s return weakened gold prices, hopes for progress towards finalizing the next round of fiscal stimulus measures in the US are supporting the safe haven appeal of the yellow metal. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are continuing discussions towards finalizing the bill before the presidential election.
Gold is also enjoying support from a deterioration in the economic outlook for the Eurozone on account of a resurgence in coronavirus cases. Several cities in Europe have been forced to bring back restrictions, impacting businesses and consumer confidence, in a bid to contain the spread of the virus once again.