Gold Rises After Bearish Pattern at Last Week’s Close

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The precious metal rose above $3,200 on Monday after suffering its steepest weekly drop in six months, as safe-haven appeal waned on concerns about the US economic outlook and budget deficit.


At 9.15am, gold was at $3,233.94, up 0.93% since it opened early Monday in Asian trading.


On Friday, Moody’s Ratings downgraded the US government’s credit rating, stripping it of its last triple-A rating, citing a large fiscal deficit and rising interest costs.


Gold fell more than 3%, marking its worst performance since November as heightened risk appetite from the US-China trade deal weighed on markets.


The two economic giants agreed to a 90-day temporary reprieve on most tariffs imposed on each other’s goods since early April, easing fears of a global recession.


Meanwhile, slowing inflation data and weaker-than-expected economic indicators in the US have reinforced expectations of more interest rate cuts by the Federal Reserve later this year.

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