Economies Coming Back from COVID-19 Pandemic Dulls Bullion Appeal
APMEX
6/4/2020 11:08:52 AM
Gold prices finished with a moderate loss on Monday, as investors weighed demand for the yellow Precious Metal against nationwide protests, the latest developments tied to U.S.-China tensions over Hong Kong, and data that pointed to an improvement in the economy. For now, the U.S. economy has shown some indications of recovery as COVID-19 lockdowns in the country begin to ease.
Gold prices gave up modest gains early Tuesday to end lower for a second session, as optimism in global stock markets pressured bullion prices. Economies reopening from forced closures due to the COVID-19 pandemic have dulled safe-haven appeal.
On Wednesday, Gold prices ended at their lowest in more than three weeks. The yellow Precious Metal was incapable of finding traction as demand for equities picked up and data showing smaller-than-expected job losses in the U.S. private sector.
Gold prices rose on Thursday, with the yellow Precious Metal getting a boost from some weakness in the U.S. stock market and the U.S. dollar. Overall, Gold buying has fueled by central bank stimulus measures to limit the economic harm from the COVID-19 pandemic, but signs of economies coming back from lockdowns have dulled bullion’s appeal.
On Friday, Gold prices fell as a drop in the nation’s unemployment rate, and an unexpected monthly rise in U.S. jobs revived the stock market, pushing prices for the haven metal toward their lowest in nearly two months. The U.S. regained 2.5 million jobs in May, and the unemployment rate fell to 13.3%, according to the Bureau of Labor Statistics.
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