Gold is losing its appeal for investors
Despite growing demand in early trading gold did not see any noticeable price growth. The metal still held on to the US$1700 level.
After the pullback of the last session gold took pack some of the growing dynamic on May 11, supported by the anxiety over the second wave of the coronavirus. Nevertheless a growing demand for US dollar, as well as general optimism on the markets, prevented any big jumps in prices.
The more or less confident growth of US Treasury bonds boosted US dollar demand while traders are mostly optimistic about the future. Economic reopenings around the world make safe havens less attractive and enhance readiness for risks.
At the same time the downturn will most likely stay soft. The rumours about the possible introduction of negative interest rates by the Federal reserve are keeping the investors ready to rush in to buy the metal.