Safe Haven Gold Makes Gains Amid Rise in Cases, Lockdowns
Arslan Butt • 1 min read
Gold prices are strengthening on Tuesday as the safe haven appeal picks up amid increasing worries about the spike in fresh coronavirus infections forcing authorities to impose tighter lockdowns and restrictions around the world. At the time of writing, GOLD is trading at a little above $1,866.
Several parts of the world are reeling under a fresh wave of the pandemic as the weather turns cooler. Many countries in Europe and some states of the US have imposed tighter restrictions and lockdowns in reaction, in a bid to contain the spread of infections once again, heightening worries about a deeper economic impact that could take even longer to recover from.
Gold prices are also enjoying support from rising hopes for more fiscal stimulus measures in the US. Amid recent weak economic data releases and fresh restrictions being imposed, traders are increasingly expecting lawmakers in the US to announce more stimulus soon, with latest reports indicating progress being made towards a bipartisan bill.
The continued increase in fresh infections and hospitalizations across the US have forced the country’s most populous state, California, to announce a lockdown that could last at least three weeks. Meanwhile, New York is considered banning indoor dining to contain the pandemic, which could further fuel worries about the economic impact of the pandemic and send gold prices higher.