Gold Attempts to Rally Amid Economic Stimulus Measures
APMEX
5/22/2020 8:27:26 AM
On Monday, Gold prices dipped low. The yellow Precious Metal gave up earlier gains as early optimistic results from a COVID-19 vaccine triggered a rally in the U.S. stock market, dulling haven demand.
Gold prices finished higher Tuesday to recover more than half of what they lost a day earlier, as Federal Reserve Chairman Jerome Powell said the U.S. central bank remains prepared to provide more support for the U.S. economy.
On Wednesday, Gold prices rose higher for a second straight session. Economic stimulus measures increased demand for the yellow Precious Metal against the backdrop of economies trying to reopen from the COVID-19 pandemic.
Gold prices posted a loss on Thursday, with the yellow Precious Metal marking its lowest finish in more than a week. Investors weighed signs of improvement in the latest economic data, dulling haven demand.
Gold prices rallied on Friday, as tensions between the U.S. and China attracted investors to haven assets. Continuing plans to reopen economies that have been halted by the COVID-19 pandemic and hope for a vaccine has limited the upside potential for bullion, according to market analyst Han Tan. “The heightened uncertainties in the markets are causing further ventures into riskier waters to pause for breath, after what has been a bumpy ride for risk assets this week,” wrote Tan.
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