Gold Rises Amid U.S. Recession Fears

Written by Staff Writer

save 3402476 640Gold rises as U.S. recession fears boost safer assets -Reuters
"Gold prices rose on Monday as investors' appetite for riskier assets faded on concerns about a potential U.S. recession and decelerating global growth, increasing appeal for the bullion alongside yen and bonds. The metal last week posted its third consecutive weekly gain and rose 1 percent, the most since the week ended Feb. 1. 'Market is in a risk aversion mode.

It seems that the data from Friday night, of U.S. and Europe, didn't come as expected,' said Michael McCarthy, chief market strategist, CMC Markets. Data on Friday showed that U.S. manufacturing activity unexpectedly cooled in March and businesses across the euro zone performed much worse than expected this month, fanning concerns on global growth. 'If data continues to be as weak as forecast then there is very good chance we could see significant higher gold prices,' McCarthy said, adding that the inversion of yield is a sign of concern. 'Volatility fueled by uncertainty and with plenty of Fed speakers expected to reinforce the dovish rhetoric from the central bank, the U.S. dollar will be limited on the upside.'"