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Gold Prices Steady as Concerns on Recession, Trade War Linger

Published 08/29/2019, 01:37 AM
Updated 08/29/2019, 01:39 AM
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Investing.com - Gold prices steadied on Thursday in Asia as equities traded lower on lingering concerns of a potential recession and developments on the Sino-U.S. trade front.

Gold Futures for December delivery on the Comex division of the New York Mercantile Exchange climbed 0.2% to $1,551.35 a troy ounce by 1:20 AM ET (05:20 GMT).

On Wednesday, a closely watched yield curve inverted and sparked fears of a potential recession. The inversion is often considered a negative sign for the economy as every recession in the last 50 years has been preceded by it.

Global stock markets fell amid the phenomenon, while gold, which usually become more attractive amid falling yields, rose.

Sino-U.S. trade uncertainties further dented investor sentiment after U.S. Treasury Secretary Steven Mnuchin declined to confirm whether a planning meeting with Chinese officials would still happen next month.

However, Mnuchin said he believes a meeting with China will still happen, although he did not say when.

Adding to the uncertainty was British Prime Minister Boris Johnson's decision to suspend parliament for more than a month before Brexit, meaning parliament will not sit between mid-September and mid-October.

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