UNITED STATES, WASHINGTON (OBSERVATORY) — Gold rose more than 1 percent on Tuesday, amid fears of a possible recession among investors following the release of disappointing US economic data and the ongoing trade dispute between the United States and China, while silver exceeded $ 18 for the first time in nearly two years.
Gold rose 1 percent in spot trade to $ 1,540.57 an ounce by 1741 GMT, approaching its highest level since April 2013 on Monday.
US gold futures for December delivery rose 1 percent to settle at $ 1,551.80 an ounce.
US consumer confidence eased slightly in August, while house price growth slowed at its slowest pace in nearly seven years.
“A lot of people are worried about the one economy that is doing well, the US economy, and with these figures on consumer confidence it puts it a bit into question,” said Chris Gaffney, head of global markets at Tia Bank.
The inverted yield curve is definitely a sign of recession. This enhances gold flows as a safe haven.”
US President Donald Trump’s comments that China has offered to resume trade talks eased some concerns in broader financial markets, but uncertainty persists as Beijing refuses to confirm.
The trade war between the world’s two largest economies has shaken markets since it began more than a year ago, raising fears of a global economic slowdown. This has helped support gold, which is often considered a safe haven in times of global uncertainty.
Among other precious metals, silver extended gains for the third straight session, jumping 3 percent to $ 18.15 an ounce. The metal hit $ 18.20 earlier, its highest level since September 2017.
Platinum rose 1.3 percent to $ 866.04 an ounce, while palladium rose 0.6 percent to $ 1482.63 an ounce.
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