Gold steady near six-year high on growing recession fears | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Tuesday
May 30, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
TUESDAY, MAY 30, 2023
Gold steady near six-year high on growing recession fears

World+Biz

Reuters
04 September, 2019, 12:30 pm
Last modified: 04 September, 2019, 01:04 pm

Related News

  • 204 gold bars worth Tk25 crore seized at Dhaka airport
  • CAAB driver held at airport with gold bars
  • Gold worth over Tk1cr seized at Chittagong airport
  • 2 held with 20 gold bars from Ctg
  • Gold worth Tk4.48 crore hidden under plane seat seized at Ctg airport

Gold steady near six-year high on growing recession fears

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar

Reuters
04 September, 2019, 12:30 pm
Last modified: 04 September, 2019, 01:04 pm
Gold bullion is displayed at Hatton Garden Metals precious metal dealers in London, Britain July 21, 2015/ Reuters
Gold bullion is displayed at Hatton Garden Metals precious metal dealers in London, Britain July 21, 2015/ Reuters

Gold held steady on Wednesday after rising 1% in the previous session, with prices hovering near a more than six-year high on heightened fears of a global recession following weak US data, the prolonged Sino-US trade spat and Brexit uncertainties.

Spot gold slipped 0.2% to $1,543.02 per ounce at 0407 GMT, but near last week's $1,554.56, its highest since April 2013.

The US gold futures were also down 0.2% at $1,552.4 an ounce.

Spot silver was up 0.7% to $19.37 per ounce, after hitting $19.57 earlier, its highest since September 2016.

With no agreement on the US-China trade front, investors remain nervous, said Michael McCarthy, chief market strategist at CMC Markets, adding that uncertainties following a parliamentary vote in the UK are positive for gold.

British lawmakers defeated Boris Johnson in parliament on Tuesday in a bid to prevent him taking the country out of the EU without a divorce agreement, prompting the prime minister to announce that he would immediately push for a snap election.

Adding to gold's safe-haven appeal was US manufacturing data that showed activity contracted for the first time in three years last month and President Donald Trump's threat that he would be "tougher" on Beijing in a second term if trade talks dragged on.

"Rising US rate cut expectations over lacklustre economic data will boost bullion appeal as traders ease up on US dollar strength," Phillip Futures analyst Benjamin Lu said in a note.

Traders have almost fully priced in a 25 basis point interest rate cut at the Federal Reserve's meeting later this month, according to CME's FedWatch tool.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.

The dollar index was down 0.1% against a basket of currencies, while Asian stocks bounced led by Chinese markets after a report showed growth in the country's service sector accelerating despite broader economic headwinds.

Spot gold faces a resistance at $1,546 per ounce, a break above which could lead to a gain into the range of $1,568-$1,595, according to Reuters technical analyst Wang Tao.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 1.34% to 890.04 tonnes on Tuesday.

Elsewhere, spot platinum dipped 0.2% to $956.04 per ounce and palladium was down 0.3% at $1,537.50.

Top News / Global Economy

gold price hike / Gold bars

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Priority on fighting inflation, funding projects
    Priority on fighting inflation, funding projects
  • Private credit growth hits 13-month low in April
    Private credit growth hits 13-month low in April
  • DSA may scare away potential investors: UN special rapporteur
    DSA may scare away potential investors: UN special rapporteur

MOST VIEWED

  • FILE PHOTO: Halime Adam Moussa, a Sudanese refugee who has fled the violence in her country for the second time, walks in line to receive her food portion from World Food Programme (WFP), near the border between Sudan and Chad in Koufroun, Chad, May 9, 2023. REUTERS/Zohra Bensemra
    UN warns more than one million may flee Sudan bloodshed
  • Jensen Huang on May 29.Photographer: I-Hwa Cheng/Bloomberg
    World's most valuable chipmaker Nvidia unveils more AI products after $184 billion rally
  • FILE PHOTO: Japan Self-Defense Forces soldiers walk past a Patriot Advanced Capability-3 (PAC-3) missile unit after Japan's Chief Cabinet Secretary Yoshihide Suga reviews the unit at the Defense Ministry in Tokyo, Japan, October 8, 2017. REUTERS/Kim Kyung-Hoon/File Photo
    Japan puts missile defences on alert as North Korea warns of satellite launch
  • This file photo shows some of about 1,000 huge tanks holding treated but still radioactive wastewater at the Fukushima Daiichi nuclear power plant, operated by Tokyo Electric Power Company Holdings (TEPCO), in Okuma town, northeastern Japan, on Feb. 22, 2023. Photo: AP
    IAEA team in Japan for final review before planned discharge of Fukushima nuclear plant water
  • FILE PHOTO: People use fans as they gather in a park amid a heatwave warning in Shanghai, China July 23, 2022. REUTERS/Aly Song
    Shanghai records hottest May day in 100 years with temp soaring at 36.1°C
  • FILE PHOTO: Japan's Prime Minister Fumio Kishida attends a bilateral meeting held by U.N. Secretary General Antonio Guterres (not pictured), on the sideline of the G7 leaders' summit in Hiroshima, western Japan May 21, 2023. REUTERS/Androniki Christodoulou/Pool
    Japan PM Kishida's son to resign as secretary after 'inappropriate' behaviour

Related News

  • 204 gold bars worth Tk25 crore seized at Dhaka airport
  • CAAB driver held at airport with gold bars
  • Gold worth over Tk1cr seized at Chittagong airport
  • 2 held with 20 gold bars from Ctg
  • Gold worth Tk4.48 crore hidden under plane seat seized at Ctg airport

Features

An exquisite symphony of flavours awaits in the heart of Old Dhaka, as this vegetarian ensemble takes centre stage, showcasing the rich heritage of traditional cuisine. Photo: Noor-A-Alam

Jagannath Bhojonaloy: Vegetarianism, the traditional way

17h | Food
Inside Airbus's mega plan to develop the aviation ecosystem in Bangladesh

Inside Airbus's mega plan to develop the aviation ecosystem in Bangladesh

19h | Panorama
How women's purchasing power is altering market dynamics

How women's purchasing power is altering market dynamics

18h | Panorama
Media companies are rushing to capture the youngest market of news consumers in the misplaced hope that this will ensure their survival. Photo: Bloomberg

News firms are too obsessed with wooing the young

18h | Panorama

More Videos from TBS

Erdogan prevails in election test

Erdogan prevails in election test

10h | TBS World
Why AB turns its focus on agri from corporate lending?

Why AB turns its focus on agri from corporate lending?

12h | Corporate Talks
Sword of Tipu Sultan sold in auction

Sword of Tipu Sultan sold in auction

13h | TBS World
Who will be the champion if rain washes out reserve day?

Who will be the champion if rain washes out reserve day?

13h | TBS SPORTS

Most Read

1
End of zero tax!
NBR

End of zero tax!

2
Photo: TBS
Energy

Wind power feeds national grid for first time Friday

3
File Photo: Mohammad Minhaj Uddin/TBS
Bangladesh

Low-cost housing planned for 4 lakh Bangabandhu Shilpa Nagar workers

4
Cenbank prints Tk70,000cr new money in 11 months to support nat'l budget
Budget

Cenbank prints Tk70,000cr new money in 11 months to support nat'l budget

5
File Photo: UNB
Bangladesh

US govt's new visa policy does not bother Bangladesh government: Shahriar Alam

6
Govt to double gain tax on land, flat registration
Budget

Govt to double gain tax on land, flat registration

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]