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Forex gold

Gold

The gold market has seen better buying this week, leading to a breakout to fresh 2020 highs, amidst a weakening in risk appetite.

Concerns this week regarding the prospect of a fresh outbreak of COVID-19 have weighed on risk appetite, seeing equities prices under pressure.

Reports of an upwards trend in new infection numbers in the US have taken center stage this week. There are also concerns that the UK is vulnerable to a fresh outbreak of the virus as it prepares to ease lockdown measures further on July 4th.

Gold prices have seen higher demand, despite a better slew of economic data earlier in the week. The UK and the eurozone both saw better manufacturing data last month. However, the US manufacturing PMI disappointed, underscoring fears for the economy should lockdown measures need to be reintroduced.

The IMF updated its global economic projections this week and now forecasts the global economy to suffer a $12 trillion hit from the virus.

The update also notes that the global...


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