---
title: "Gold Hovers Above $2,000 as Traders Assess Recession Risk"
description: "Gold edged slightly higher, hovering above $2,000 an ounce with traders assessing the Federal Reserve’s interest-rate path following weaker-than-expected economic data from the US."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-04-05-gold-hovers-above-2000-as-traders-assess-recession-risk/"
published: "2023-04-05T18:27:55"
lang: "en-ZA"
word_count: 165
---

# Gold Hovers Above $2,000 as Traders Assess Recession Risk

> Gold edged slightly higher, hovering above $2,000 an ounce with traders assessing the Federal Reserve’s interest-rate path following weaker-than-expected economic data from the US.

By Bloomberg · Published 5 April 2023, 20:27 SAST

## Key points
- Gold remains a safe bet despite economic turbulence, with analysts predicting it could break its previous record and reach $2,200 an ounce by early 2024.
- US service sector expanded in March at a slower pace than expected
- Companies added fewer jobs than forecast while wage growth slowed
- Gold remains above key level, suggesting continued demand from investors seeking safety
- UBS Group AG strategists predict gold eventually breaking its previous record to test $2,200 an ounce by early 2024

## Content

The [US service sector](https://www.bloomberg.com/news/articles/2023-04-05/us-service-gauge-falls-more-than-expected-as-demand-moderates) expanded in March at a much slower pace than projected on considerably softer new orders growth and business activity. Companies [added fewer jobs](https://www.bloomberg.com/news/articles/2023-04-05/us-companies-add-fewer-jobs-than-forecast-adp-data-show) than forecast while wage growth slowed, underscoring labor demand that’s showing some signs of cooling. The dollar and Treasuries advanced in response as recession concerns resurfaced. That weighed on bullion as it’s priced in the greenback.

Still, the precious metals remains above the key level, suggesting continued demand from investors seeking safety on the back of elevated inflation, a weakening labor market, tight liquidity and brittle credit.

“We have always viewed gold as a hedge in a portfolio context, and its safe-haven qualities have shined through again during the latest market turbulence,” UBS Group AG strategists including Giovanni Staunovo said in a note. The analysts see bullion eventually breaking its previous record to test $2,200 an ounce by early 2024.

Spot gold was up less than 0.1% to $2,021.69 an ounce as of 11:56 a.m. in New York.