Gold Records Longest Winning Streak Since February

SadaNews - Gold prices maintained their longest winning streak since February, supported by increasing concerns over a slowdown in the U.S. economy, which boosted demand for safe-haven assets, along with traders' bets on interest rate cuts.

The price of the precious metal stabilized in early Asian trading at around $3,383 per ounce, after gaining over 3% during the previous four sessions.

The latest indicator of the damage caused by tariffs to the U.S. economy came from data showing a contraction in the services sector in July. Last week's data also revealed weaknesses in the labor market and consumer spending.

Interest Rate Cut Expectations Support Gold

Signs of a slowdown in the world's largest economy have fed expectations that the Federal Reserve will move towards easing monetary policy at its next meeting in September, with traders seeing a 90% chance of an interest rate cut. Lower interest rates are a supportive factor for gold, which does not yield returns.

Gold has risen by about 30% since the beginning of the year, driven by investors' interest in safe assets amid escalating trade disputes, geopolitical tensions, and waning confidence in dollar-denominated assets.

However, the metal has remained confined to a narrow trading range in recent months, lacking new catalysts to surpass the historic peak of around $3,500 per ounce recorded in April.

Gold stood at $3,383.09 per ounce at 8:19 AM Singapore time, while the Bloomberg Dollar Index showed little change. Silver and palladium prices also saw minor fluctuations, while platinum decreased slightly.