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.
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.