💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

PRECIOUS-Gold prices climb as U.S. bond markets warn of recession

Published 08/15/2019, 09:24 AM
Updated 08/15/2019, 09:30 AM
PRECIOUS-Gold prices climb as U.S. bond markets warn of recession
XAU/USD
-
GC
-
GLD
-
MIWD00000PUS
-
DXY
-

Aug 15 (Reuters) - Gold prices rose on Thursday as an
inverted U.S. bond yield curve alarmed investors about rising
recession risks, while the protracted Sino-U.S. trade war added
to fears of a global economic slowdown, increasing the appeal
for safe-haven assets.

FUNDAMENTALS
* Spot gold XAU= was up 0.3% at $1,520.19 per ounce at
0100 GMT.
* U.S. gold futures GCcv1 fell 0.1% to $1,526.80 an ounce.
* The U.S. Treasury yield curve US2US10=TWEB temporarily
inverted on Wednesday for the first time since 2007, an
indication that is widely seen by investors as a sign of an
upcoming U.S. recession. USD/
* Economic data from China and Germany suggested a slowing
global economy, hit by the unabating U.S.-China trade war,
Brexit and geopolitical tensions. * On Wednesday, U.S. officials said China has made no trade
concessions after U.S. President Donald Trump postponed the 10%
tariffs on over $150 billion worth of Chinese imports, the
latest sign that efforts to reach a trade deal were going
nowhere. * The MSCI All Country World Price index .MIWD00000PUS ,
which incorporates readings of 49 equity markets across the
world, shed 2.1% to its lowest level since June 4. MKTS/GLOB
* The dollar index .DXY , which measures its value against
a basket of six major currencies, was little changed after a
0.2% gain on Wednesday. USD/
* Investors are focused on the Federal Reserve's annual
symposium next week. Traders see an about 74% chance of a 25
basis-point rate cut by the Fed this September. FEDWATCH
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.91% to 844.29
tonnes on Wednesday. GOL/ETF

DATA AHEAD (GMT)
* 0130 Australia Employment July
* 0830 UK Retail Sales MM, YY July
* 1000 EU Reserve Assets Total July
* 1230 US Initial Jobless Claims Weekly
* 1230 US Philly Fed Business Index August
* 1230 US Retail Sales MM July
* 1315 US Industrial Production MM July


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.