On Monday, March 25, gold prices crept up amid fears over the looming recession. The fears contributed to an increase in demand for safe-haven assets, including the yellow metal.
The COMEX gold futures advanced by 0.3% to the level of $1,322.05. Last week, the precious metal added 1%, having registered the third week of growth in a row.
The US bond yield curve inverted last Friday, having fueled speculations about possible recession. Some experts say that such an inversion is often a warning sign of an economic slowdown. As a result, the global stock indices plunged: the Nikkei 225 lost over 3%, while the Hang Seng declined by 2%.
At the same time, the recent developments boosted a rise in gold prices. Analysts at TD Securities believe that this situation can lead to a sustainable rally as the interest rates remain low amid a slowdown in the global economy. The Federal Reserve kept the funds rate unchanged and underlined that no further rate hikes should be expected this year. Experts also drew attention to geopolitical tensions that are connected with uncertainty over Brexit and a lingering trade conflict between the United States and China.
