FE Today Logo

Gold ekes out gains as slowdown fears mount

June 24, 2022 00:00:00

Gold prices edged up on Thursday as growing recessions fears and a pull back in US Treasury yields helped bullion overcome pressure from expectations of aggressive monetary tightening, reports Reuters.

Spot gold rose 0.3 per cent to $1,842.85 per ounce by 1411 GMT. US gold futures inched 0.4 per cent higher to $1,845.20.

Buoying gold's appeal, especially among overseas buyers, the dollar index pared some gains on data showing a dip in US weekly jobless claims last week as labour market conditions remained tight, though some slowing is emerging.

Meanwhile, US business activity slowed considerably in June, a survey showed.

Gold is going to have some underlying support here due to the global recession fears, said Edward Moya, senior analyst with OANDA.

"In this current environment, there's still a lot of pessimism and hesitancy to pile into risky assets right now. So treasury yields might see downside and this is once again good news for gold."

US yields fell to their lowest in almost two weeks.

But while gold is considered a hedge against inflation and economic uncertainties, rising interest rates reduce appeal for the asset, which pays no interest.

Spot silver rose 0.2 per cent to $21.44 per ounce, platinum was down 0.5 per cent, to $922.15. Palladium gained 0.4 per cent to $1,870.46.

Share if you like