Gold Bullish Amid Risk-off Mood – Economic Impact of Pandemic in Focus

On Wednesday, gold prices are climbing higher amid the risk-off mood in global financial markets over worries about the economic impact of the new strain of coronavirus even as the US released disappointing economic data highlighting the need for more fiscal stimulus. At the time of writing, GOLD is trading at a little above $1,866.

Several countries worldwide have banned international travel of both freight and passengers from the UK. In addition, pharmaceutical companies have also started rushing to test their vaccines under development to assess their effectiveness in controlling this latest strain of the virus.

The safe haven appeal of gold has strengthened over renewed worries that the ongoing pandemic could hurt the global economy more severely, despite the vaccines that have begun rolling out in some parts of the world, including Britain. Despite the rollout, the number of fresh infections continues to soar, across Britain, the US and many other parts of the world, raising fears that governments could announce tighter lockdowns and restrictions.

Meanwhile, gold prices also received support after consumer confidence in the US fell to the lowest level seen in four months during December even as home sales in the country also declined, heightening worries that the US economy has been impacted significantly by the pandemic. Meanwhile, the coronavirus relief package ran into some more trouble after President Trump threatened to not sign it unless the Congress makes some changes to it.

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.

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