In its latest survey of fund managers, Bank of America Merrill Lynch points out that the proportion of fund managers expecting a global recession in the next 12 months was at its highest since 2011. Last week, the US yield curve inverted, setting the stage for the yellow metal to shine even brighter.
“The US yield curve is a key factor that seems to be driving the upmove in gold prices. This is something similar to what we saw during 2008-09,” said Debajit Saha, senior precious metals analyst at Thomson Reuters GFMS in India.
“Currently, the US yield curve is inverted and more easing by the central banks would make gold an attractive asset. An inverted yield is seen as a sign of recession, which means safe haven demand for gold should rise.”
While a curve inversion is widely considered a warning that the US economy is headed for recession, some experts have argued this is debatable. Nevertheless, a look at the gold market suggests traders are seeking refuge in the precious metal.
TODAY IS EXPIRY THERE WOULD BE VOLATILITY TOWARDS END OF DAY IF SOME NEWS COMES OUÞ OPERATORS WOULD BE ACTIVE TRADE CAUTIOUSLY OVERALL MARKET NEGATIVE BUT IF SHORT COVERING COMES AT 2.30 DIFFICULT FOR MARKETS😇