Gold’s Bullishness Continues Over Signs of Weakening in US Economy
Arslan Butt • 1 min read
Gold prices continue to trade steady close to six-year highs on Wednesday over rising worries of the US-China trade war and its impact on the global economy. At the time of writing, GOLD is trading at a little above $1,535 after a 1% gain during the previous trading session.
A deepening inversion of US bond yield curves further increased the worries of a possible upcoming recession. The yield curve inversion of 10-year Treasury yields vs. 2-year Treasury yields reached the deepest levels since 2007.
Gold is also trading higher after the release of US consumer confidence and housing data on Tuesday. US consumer confidence dipped to 135.1 in August from 135.8 in July. while US house price growth dipped to 3.1% YoY in June from 3.3% YoY during May 2019.
The trade war sentiments continue to exert an upward pressure on gold prices, keeping the demand for the safe haven asset high. Meanwhile, signs of weakness in the US economy and the US dollar continue to drive bullishness in the precious metal.