Gold gains extend amid US economic slowdown fears and rate cut bets

Gold held its longest streak of gains since February, boosted by fears of a US economic slowdown that have increased haven demand, along with traders’ bets on lower interest rates.

The precious metal has been range-bound over the past few months, lacking new catalysts to surge past its record high(Unsplash/representational)

Bullion was steady at around $3,383 an ounce in early Asian trading, after gaining more than 3% over the previous four trading sessions. In the US, the latest sign of tariff-inflicted damage on the economy came from data that showed the services sector effectively stagnated in July. Other figures last week highlighted a weak labor market and consumer spending.

Signs of weakness in the world’s biggest economy have spurred wagers on the Federal Reserve easing monetary policy at its next meeting in September, with traders seeing a 90% chance of a cut. Lower rates are typically supportive of non-interest paying bullion.

Gold has climbed nearly 30% this year as investors have sought safety amid heightened trade conflicts, geopolitical tensions and eroding trust in dollar-denominated assets. Still, the precious metal has been range-bound over the past few months, lacking new catalysts to surge past its record high of about $3,500 an ounce reached in April.

Bullion was steady at $3,383.09 an ounce as of 8:19 a.m. Singapore time. The Bloomberg Dollar Spot Index was flat. Silver and palladium were little changed, while platinum edged lower.