Gold Trades Steady Near Six-Year Highs
The precious metal gold is trading steady close to six-year highs as worries about an impending recession resurface in global financial markets. At the time of writing, GOLD is trading at a little above $1,544.
Following the release of a weak manufacturing report from the US, the dollar has been trading weaker as markets worry about the Us economy falling into recession. This has caused a weakness in US bond yields as well, with the yields on 10-year Treasury notes sliding to three-year lows.
With no resolution in sight in the ongoing and worsening US-China trade war, gold is expected to remain bullish for some time to come. In addition, rising uncertainties surrounding Brexit are exerting further upward pressure on the precious metal.
Gold is also enjoying support from increased sentiments for a rate cut by the Fed in its upcoming meeting this month. When the Fed cuts interest rates, it drives weakness in the dollar and heightens the safe haven appeal.
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