Gold Stays Steady Above $ 1870

Gold Stays Steady Above $ 1870

Gold remained stable above the $ 1870 level, near multi-year tops. After an early drop in the $ 1864 area, precious metal managed to attract some fresh purchases and was supported by several factors. Concerns about the deterioration of US-China relations continued to attract investors to traditional safe haven assets, and were noticed as one of the key factors contributing to their gold gains. China quickly responded after the US ordered China to close its consulate in Houston on charges of espionage. Concerns have increased over the increased diplomatic tensions between the two largest economies facing each other. On the other hand, the rise in the past hour could lead to fresh sales in the US dollar. The second wave of coronavirus in the US has completely disappeared, except for the hope of a rapid return for the domestic economy. Combined with the stalemate in the next round of US fiscal stimulus measures, the dollar weakened further, resulting in a moderate increase in commodity in dollars. Despite negative developments, optimism over a potential vaccine for coronavirus supported a positive mood around stock markets.