logo-loader

Gold price rises overnight, after unsettled trading in Asia

The gold price is sensitive to the dollar and to political and economic uncertainty

Gold is on the move
Gold is on the move

The gold price ticked up to over US$1,750 per ounce amidst unsettled trading in Asia overnight.

The rise comes even as the US dollar remains relatively strong, and is a sign that investors remain willing to spend when it comes to laying in a hedge against uncertainty.

In particular, traders are fretting about the possible impact of a second wave of coronavirus. A new outbreak in Beijing initially spooked markets, although the latest commentary has given some indication that the new outbreak has been contained locally.

Meanwhile, President Trump of the US has been ratcheting up his anti-China rhetoric even as he appears to be losing ground in the polls. Trump continues to blame China for the coronavirus outbreak, and many market watchers are pointing to the known existence of a bioweapons laboratory near the epicentre of the virus outbreak in Wuhan as significant circumstantial evidence supporting his argument.

Even so, market watchers are uncertain about what will come next for gold.

An analyst at Swissquote Bank said Monday morning it was either going to go lower or higher, to US$1,725 or above US$1,800.

The trend is probably towards the upside, given that the US election is getting nearer by the day and much uncertainty remains.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

GoviEx Uranium CEO talks new gold anomalies in Mali and updates on eagerly...

GoviEx Uranium Inc's (CVE:GXU) (OTCQB:GVXXF) Daniel Major discusses with Proactive's Andrew Scott new gold in soil anomalies at its Falea project in Mali. He says it indicates potential extensions of the Sirabaya West and Siribaya-Bambadinka gold trends and may intersect within the Falea...

3 hours, 49 minutes ago

2 min read