Gold Trades Lower as Fears of Recession Slide Down
Arslan Butt • 1 min read
Gold prices are trading lower early on Monday as the dollar rebounds and trades close to a two-week high. At the time of writing, GOLD is trading at a little above $1,509 over expectations of central banks stepping in to prevent the global economy from weakening further.
This week’s focus will remain on the Jackson Hole Symposium of the Federal Reserve where markets are expecting the US central bank to announce a 0.25% rate cut in September. If there are indications for more rate cuts, this will exert an upward pressure on gold in the coming days.
At the end of the previous week, US stock markets also witnessed a rally with the DOW gaining over 300 points as bond yields rebounded and the fears of a recession came down. News reports suggesting that Germany is considering issuing more debt to stimulate its economy further improved the market sentiment, causing gold to turn bearish.