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Gold Prices Gain as Recession Fear Sparks Safe-Haven Demand

Gold prices gained on Monday in Asia as recession fear sparked safe-haven demand.

Gold Futures traded up 0.3% at $1322.05 on the Comex division of the New York Mercantile Exchange by 1:25 AM ET (05:25 GMT). The precious metal last week posted its third consecutive weekly gain and rose 1%, the most since early February.

On Friday, the spread between 3-month Treasury bills and 10-year note yields inverted for the first time since 2007 after U.S. manufacturing data missed estimates. This inversion of the yield curve is widely seen as a leading indicator of recession.

The news sent global stocks lower, with Japan’s Nikkei 225 plunging more than 3% on Monday while Hong Kong’s Hang Seng Index also slid close to 2%.

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