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Gold Holds Steady as Dollar Stalls and Economic Worries Remain

Published 09/03/2020, 12:36 AM
Updated 09/03/2020, 12:43 AM
© Reuters.

By David Ho

Investing.com - Gold prices edged higher on Thursday after a steep fall in the previous session, while a weaker U.S. dollar and global economic outlook concerns from rising COVID-19 cases underpinned gold’s appeal.

Gold futures edged up 0.19% to $1,948.25 by 12.35 AM ET (5.35 AM GMT).

The dollar fell 0.1% after a significant rise in the last session, which made the yellow metal less expensive for holders of other currencies.

U.S. private employers hired fewer workers than expected for a second straight month in August, a sign that labor market recovery was slowing as the COVID-19 pandemic drags on.

U.S. business activity and employment ticked up through late August, according to the Federal Reserve on Wednesday. However, economic growth was generally slow as COVID-19 continued to challenge the re-opening efforts that fueled an early-summer rebound.

Gold’s rise is attributable to its reputation as a safe haven asset during times of political and financial uncertainty.

More than 25.92 million people have been infected by the coronavirus worldwide and 860,883 have died as of September 3, according to Johns Hopkins University data.

Meanwhile, China said earlier in the day that the Caixin services PMI for August was 54, slightly down from July’s reading of 54.1 but still indicative of a fourth month of growth.

Latest comments

Yes. Gold prices are holding steady as USD Index is strengthening vs. last week. US economy is showing signs of improvement and that would further strengthen the USD Index. Again, any positive news on vaccine would further put pressure on gold prices. On contrary, Fed decision to keep the rates unchanged or low is one big bullish factor for gold.
gold is dropping. isnt that the opposite of holding firm?
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