Recent retracement in the US yields and the US Dollar supported Gold prices. Economists at ANZ Bank analyze the yellow metal outlook.
The risk of a US recession could lift Gold investment
Weakening economic data saw US yields and the USD falling sharply, providing much needed support to the Gold market. Slowing inflation in China is increasing the prospect of the Fed pausing its rate raising cycle after its July meeting.
This has built up speculative long positions while failing to curb outflows of exchange-traded funds. The risk of a US recession, evident in the inverted yield curve, could lift Gold investment.