Gold prices recover from losses as U.S. Dollar drops from record highs
Gold prices surged up in Asian markets on Monday morning amid a weakening U.S. Dollar, recovering the yellow metal from a streak of losses last week.
Gold Futures had momentarily surpassed the $1,500 mark with an opening of $1,506.15 per ounce before it settled at $1,490.45 by 9:22 PM ET (1:22 GMT).
Gold has once more redeemed its safe-haven status after the Greenback had challenged the commodity with record highs last Friday. Gold prices have often been observed to trend indirectly proportional to the direction of the U.S. Dollar.
Gold prices benefitted from a recent stumble in equity markets in Asia as piling fears of a virus-led economic recession left investors apprehensive.
The price hike in gold was “definitely a sigh of relief for markets”, Forex analyst at Monex Europe, Simon Harvey said in a Bloomberg interview. “In this market nothing is taken for given, you have to take every day as it comes.”
He further stated that liquidity would still play a part in placing upward pressure on the U.S. Dollar.