Gold prices remained relatively stable on Wednesday, maintaining recent gains as concerns of a looming recession in the eurozone bolstered safe-haven demand.
However, potential significant advances were curtailed by persistent apprehensions regarding higher U.S. interest rates. Recent data, released on Tuesday, indicating an improvement in local business activity, further fueled these concerns. The dollar strengthened in overnight trade, and Treasury yields steadied after recent declines.
The safe-haven appeal of gold waned this week following signs of de-escalation in the Israel-Hamas conflict, marked by Israel’s decision to postpone a planned ground assault on Gaza. Nevertheless, weak purchasing managers index data from the eurozone dampened investor sentiment, sparking worries about a potential recession in the region. Germany, the largest economy in Europe, had slipped into a recession earlier this year.
Gold prices hovered close to the $2,000 an ounce mark. However, whether the precious metal would breach this threshold in the near term remained uncertain. The market’s anticipation was further heightened as several crucial U.S. economic indicators are expected later this week.
As of 14:00 GMT, spot gold remained within a narrow range, trading at $1,975.13.
