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Recession Fears Drive Precious Metals Up

September 3, 2019 at 17:57 by Vladimir Vyun

Gold rallied today, and other precious metals joined the rally, with silver being the biggest victor. Market analysts speculated that the reason for the rally was fear of a global economic recession, which prompted investors to seek a safe haven. The dreaded yield curve inversion remained in place after the prolonged weekend in the United States ended. Experts point out that inversions of the yield spread between two- and 10-year Treasury bonds preceded every single recession since 1950. Weak manufacturing data in the United States, eurozone, and other parts of the world added to concerns. And the continuing trade conflict between the USA and China remains a major reason for traders to shun risk and seek safety.

Futures for delivery of gold in December surged 1.68% to $1,555.10 per troy ounce as of 17:48 GMT on COMEX today. Value of contract for silver jumped as much as 4.95% to $19.25 per ounce. Spot price for platinum jumped 2.51% to $953.91 per ounce, and palladium rose 0.30% to $1,541.34 per ounce.

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