Gold: increased to a 4-week high of 1775 USD/t.oz, amid softening US Treasury yields and a retreat in the US dollar.
The yield on the US Treasury 10-year note dropped to a four-month low of below 2.6%, on fears that an aggressive tightening from major central banks will eventually trigger a global economic recession.
The latest data showed the US economy shrank for the second straight quarter in Q2, while the Fed’s preferred inflation measure came slightly above market consensus.
The US central last week raised interest rates by an expected 75-basis-points, but comments from chair Jerome Powell spurred hopes of a slower hiking path, hitting the dollar. Market participants now await the monthly US jobs report as it could influence the Fed’s rate hike plans.
