Gold Holds Steady Amid Recession Fears and Safe-Haven Demand

Gold steadied around $2,410 per ounce on Tuesday after a decline of over 1% in the previous session. The metal’s upside bias remained intact, buoyed by its safe-haven appeal as markets grew more risk-averse. Investors continued to assess the likelihood of a US recession in light of weak economic data and disappointing corporate earnings, which heightened expectations for multiple rate cuts by the Federal Reserve. Markets are now pricing in over 100 basis points of total easing this year, with a significant 50 basis point rate cut anticipated in September. Additionally, San Francisco Fed President Mary Daly stated on Monday that she was open to cutting interest rates if necessary and highlighted the importance of a proactive policy approach. Meanwhile, ongoing tensions in the Middle East continued to enhance gold’s appeal as a safe haven.

After the yesterday’s sell off , gold starts the day in a sideways trend, with the first support level at 2,390. If this level is breached, the next supports to watch will be 2,375 and 2,355. On the upside, the initial resistance is at 2,415; if this level is surpassed, the next targets will be 2,430 and 2,450.