Gold Up Over Gloomy U.S. Data

Gold was up on Wednesday morning in Asia, with investors turning to the safe-haven asset as the outlook for a global economic recovery from COVID-19 turns gloomier.

Data released on Tuesday showed a dive in U.S. consumer confidence, with the Conference Board (CB) consumer confidence index falling to 84.8. Fears over rising unemployment due to COVID-19 saw the index hit its lowest level since May 2014.

Chinese President Xi Jinping also warned on Tuesday that China’s economy is facing “turbulent change”, with the country increasingly reliant on domestic demand to spur growth

Gold futures were up 0.47% at $1,932.05 by 12:42 AM ET (5:42 AM GMT).

Meanwhile, AstraZeneca’s vaccine candidate AZD7442 saw the first participants inoculated, in a step forward for the company’s phase one trials and for a potential cure for the virus.

The optimism that continues from U.S. and Chinese officials affirming their commitment to their phase one trade deal on Monday capped the yellow metal, but tensions continue to simmer as the two sides continue to disagree on other issues.

Investors are now looking for further guidance from U.S. Federal Reserve Chairman Jerome Powell, who is scheduled to deliver a speech at Thursday’s Jackson Hole symposium.