Gold Sees Opportunity in Slowing US Economy and Weakening Dollar
Gold prices have rebounded in recent days as investors grow uncertain about an interest rate hike in October. The US economy's prospects are dimming, with a 12-year low in consumer confidence and a decline in job vacancies.
The Treasury yield curve is approaching inversion, a sign often seen before recessions. This has reduced the likelihood of a second consecutive Fed rate rise from 73% to 46%, according to John Williams, President of the New York Fed.
Gold had fallen to its lowest level since August 4 due to market expectations of an interest rate hike and the US dollar's strength. However, the metal has regained some ground, rising above $4,200 by midday on Wednesday.
The inflow of 63 tonnes into gold ETFs in September suggests sustained investor interest in bullion. This trend is driven by concerns over public finances in major economies with high debt-to-GDP ratios and chronic budget deficits.