Dollar VS Gold

USD has held its relatively firm position as the record 17.7% retail sales jump hit the fan Tuesday, having risen about 0.4% to stand at 97.003, despite Powell’s cautious tone on the future of the US economy.

The ultimate safe-haven asset - Gold, has too fallen on hopes of a quick economic recovery as investors’ desire for risk increased on positive retail sales, COVID-19 cure breakthrough and Trump’s industry aid plan.

EUR and AUD have, however shed 0.5% and 0.4%, respectively. Indeed, more risk-sensitive currencies have been shaken by coronavirus concerns and the newfound diplomatic tensions in Asia. 

Experts agree that caution is advised as the new virus outbreak in Beijing, and the escalating tensions between both - China and India, as well as South and North Korea, may give investors a cold shower, causing them to turn back to gold sooner than one would imagine.

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