Gold Crawls Higher Over Safe Haven Demand – US Recession Fears Lift
Arslan Butt • 1 min read
On Monday, the precious metal gold stays stronger over concerns about a potential recession in the US and decelerating global growth pressures on stock markets. As a result, investors have increased the appetite for safer assets.
Well, another reason, the precious metal gold soared to a three-week high is because of the US Federal Reserve signal no chances rate hikes in the year 2019. The Fed was more cautious about the market than economists were expecting, fueling concerns about the US economic conditions.
In response to both scenarios, traders triggered the safe-haven demand. There was a dramatic move in gold on the upper side as the metal jumped from $1,300 to $1,319.
GOLD – Technical Outlook
On the technical side, gold is trading near $1,319 resistance area. The leading indicators are in the buying zone. An upward breakout at $1,319 level can extend bullish rally towards $1,326. While gold can stay bearish below $1,319 to again support around $1,309 area.