Precious Metals React to Global Economic Factors: Gold Rallies on U.S. Recession Concerns, Silver Gains from Chinese Stimulus
Gold's appeal to investors has diminished due to the improving economic outlook in the United States, but weakness in U.S. consumers could still lead to a recession and boost the precious metal, according to Heraeus. The analysts believe that the Federal Reserve is likely to maintain a 'higher for longer' policy on interest rates, which has strengthened the dollar and caused the gold price to slip. However, if consumers falter and a recession occurs, the gold price could rebound. Meanwhile, silver is expected to benefit from Chinese stimulus measures aimed at bolstering the economy, as expectations of further stimulus support industrial metals prices.
