Gold’s Bullishness Continues Over Signs of Weakening in US Economy

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.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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