Gold prices were down on Wednesday in Asia even after the U.S. Treasury yield curve inverted again and sparked worries about a recession.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange were down 0.4% to $1,545.25 a troy ounce by 12:07 AM ET (4:07 GMT).
The yellow metal fell despite worries about a global economic slowdown. The yield on the benchmark 2-year Treasury note fell to 1.526% overnight, creating an “inverted yield curve.”
The phenomenon raised concerns of a potential recession. The last time the long-term yield fell below a short-term yield was in December 2005, two years before the Great Recession, according to CNBC.
The U.S. yield curve inversion sent U.S. stocks down overnight. While gold prices initially jumped about 1% following the news, it gave up its gain on Wednesday in Asia and traded in the red.
Source : Investing.com