Gold prices recover as Wall Street selloff eases
Gold prices climbed, reclaiming a modest position above $2,900 per ounce, as the global market selloff that had unsettled Wall Street began to lose momentum.
Despite this, investor concerns about the US economy’s outlook remained, News.Az reports, citing Bloomberg.
Bullion pushed higher following a small drop on Monday, when President Donald Trump’s signals that the economy could first suffer as he reshapes trade policy with tariffs stoked concerns about a potential recession. The metal — a traditional haven asset — can face selling pressure during sudden market selloffs.
Gold has advanced 11% this year, hitting successive records. The rally has been driven by fears about the disruption caused by the Trump administration, central-bank buying, and speculation the Federal Reserve may cut interest rates further. Lower borrowing costs tend to benefit non-yielding gold.
While bullion’s climb has sapped demand for physical metal in some of Asia’s leading economies, it’s been accompanied by steady investment flows into gold-backed exchange-traded funds. These reached the highest level since December 2023 last week, according to a Bloomberg tally.
“Gold finds itself without a solid physical-market floor” amid lackluster demand in India and China, Standard Chartered Plc analyst Suki Cooper said in a note. Still, prices are expected to hit fresh highs this year, with stronger flows into ETFs needed to offset the decline in physical demand, she said.
Spot gold gained 0.4% at $2,900.78 an ounce at 7:30 a.m. in London. The Bloomberg Dollar Spot Index declined 0.2%. Silver and palladium edged higher, while platinum was little changed.
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