Gold Pares Gains With Focus on Rates Outlook and Recession Risks
- Fresh US data pointed to firm growth in manufacturing
- Prices unlikely to rise with a worsening growth outlook: TD
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Gold pared early gains as investors assessed the increasing risk of a global recession against the Federal Reserve’s tightening path.
Bullion has had a wild ride this year, tumbling almost 20% since a March peak as the Federal Reserve aggressively tightened monetary policy, prompting investors to seek shelter in the US dollar. The non-yielding metal, which typically has a negative correlation with the dollar and rates, has been pressured by the stronger greenback.