Gold Rises Amid Rallying Stocks
APMEX
5/7/2020 8:46:59 AM
On Monday, Gold prices ended higher on for the second session in a row. Prices saw a boost from vulnerability in global stock markets amid fears of an escalation of tensions between the U.S. and China over the worldwide outbreak of COVID-19. On the contrary, Silver shed nearly 1% to $14.79 an ounce.
Gold prices fell on Tuesday to mark the yellow Precious Metal’s first loss in three sessions. Prices were drawn down by optimism of the reduction of business closures in the U.S. and Europe, and hopes of progress for a vaccine for COVID-19.
On Wednesday, Gold prices settled with a more than 1% loss. The strengthening of the U.S. dollar and the reopening of some economies around the world reduced the desire for safe-haven bullion. The U.S. dollar was up 0.3% against major currencies as Gold prices settled. Meanwhile, Silver fell 9.5 cents to $15.01 an ounce, after the gray metal rose 2.1% the previous day.
Gold prices rose on Thursday, finding support even as stocks rallied in the wake of aggressive monetary easing by major central banks. The rise comes despite efforts to commence or continue reopening economies temporarily closed by the COVID-19 pandemic. “Historical correlations are rules that can be broken, and we think that these days, Gold can continue to win even if equities improve, as investors are acutely aware of the risk that they are taking on and will seek out hedges like Gold,” said Christopher Louney, an analyst at RBC Capital Markets.
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