Gold Supported by Worries of Resurgence in Coronavirus Cases
Gold prices are making gains in early trading on Tuesday as markets focus on the spike in coronavirus cases across the US and Europe
Gold prices are making gains in early trading on Tuesday as markets focus on the spike in coronavirus cases across the US and Europe and how it can impact the economy. At the time of writing, GOLD is trading at a little above $1,907.
With winter coming up soon, parts of the US and Europe are reporting a surge in the number of infections and hospitalizations, raising worries that countries will reimpose more restrictions that could drive more economic damage and delay recovery further. This sentiment is supporting the safe haven appeal of gold among investors lately.
However, uncertainty about the coronavirus relief package in the US is keeping gold’s gains in check for now. Even though latest reports indicate that Democrats and Republicans are working towards reading an agreement on the bill, the likelihood of it passing before next week’s elections is low.
The yellow metal also finds support from ongoing Brexit negotiations, with EU’s chief negotiator traveling to London to maintain discussions. With time running out, both sides have yet to work out difference on key issues, heightening the possibility of a no-deal Brexit.
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