Talk of recession in US moves investors to safe-haven gold
Gold has gained over 13% since touching a one-and-a-half-year low last August, mainly driven by a dovish US Fed and global growth concerns
Bengaluru — Gold rose on Monday as investors flocked to safe-haven assets on concerns over a possible recession in the US that dented the dollar and added to an increasingly bleak picture on global growth. Spot gold gained 0.3% to $1,316.58 an ounce at 11.15am GMT. The metal posted its third consecutive weekly gain last week with a rise of about 1%. US gold futures were up 0.3% at $1,316.70. Equity markets, meanwhile, hit a 12-day low after global economic worries were exacerbated by an inversion in the US bond yield curve on Friday, stoking fears of a possible recession in the world's largest economy and boosting demand for assets such as gold and the yen while denting the dollar. "The [gold] market has continued to rise in response to the continued worries that we have seen creeping in the market about recessionary risks," said Saxo Bank analyst Ole Hansen. "But at this stage, it is not a sprint, it is a grind," Hansen added, reasoning that gold's moves higher lacked conviction de...
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