Gold takes heart as worry about a US recession boosts safe-haven assets
Metal benefits as traders lose their appetite for risk amid growing concern about decelerating global growth
Bengaluru — Gold rose on Monday as investors’ appetite for riskier assets faded on concerns about a potential US recession and decelerating global growth, increasing appeal for the bullion alongside yen and bonds. Spot gold was up 0.2% at $1,316.11 per ounce in early-morning trade, while US gold futures gained 0.3% to $1,315.80 an ounce. The metal posted its third consecutive weekly gain last week and rose 1%, the most since the week ended February 1. Investors dumped shares and fled to the safety of bonds, while the Japanese yen hovered near a six-week high. “[The] market is in a risk aversion mode. It seems that the data from Friday night, of US and Europe, didn’t come as expected," said Michael McCarthy, chief market strategist, CMC Markets. Data on Friday showed that US manufacturing activity unexpectedly cooled in March and businesses across the eurozone performed much worse than expected in March, fanning concerns on global growth. “If data continues to be as weak as forecast ...
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