Gold gains as US economic recession warning surfaces

Gold prices increased today, June 28, buoyed by weakening US Treasury bond yields as US economic recession signals intensify, while markets await developments related to the G7 nations’ ban on imports of the precious metal from Russia.

Gold futures for August delivery rose 0.21% to $1,828.80 an ounce at 11:45 am Makkah time, with spot prices also up 0.30% to $1,828.17 per ounce.

Elsewhere, silver futures for July delivery surged 0.55% to $21.28 per ounce. The spot price of platinum jumped 0.37% to $911.36, and the spot price of palladium also gained 1.32% to $1,895.09.

The main dollar index, which measures the performance of the US currency against a basket of six currencies, settled at 103.91 points.

On the economic data front, the US Consumer Confidence is due later today, with expectations of a decline to 100 points in June from 106.4 points in the month before.

Economists from the S&P rating agency warned yesterday, June 27, that the Federal Reserve's continued aggressive policy raises the risk of the US entering a recession next year for combating the accelerating inflation by increasing interest rates at the expense of economic growth.