Gold prices win, fear of recession sparks demand for a safe haven by Investing.com

Investing.com – Gold prices rose on Monday in Asia as fear of recession led to demand for safe havens.

Transactions on the Comex division of the New York Mercantile Exchange rose 0.3% at 01:25 (00:05) (0525 GMT). The precious metal recorded a third consecutive weekly increase and a rise of 1%, its highest level since early February.

On Friday, the gap between 3-month Treasury bill and 10-year note yields reversed for the first time since 2007 after manufacturing data in the United States was not estimated. This reversal of the yield curve is widely regarded as a leading indicator of recession.

The news has led to a decline in global equities. Japan dipped by more than 3% on Monday, while Hong Kong also fell by nearly 2%.

On the other hand, gold prices have risen along with the appetite for safer badets.

"The gold price action continues to bolster our view that the expected deterioration of the data will help trigger a rise in gold as interest rates continue to fall against the backdrop of the past." 39, a declining global economy, "writes TD Securities badysts in a note.

The US Federal Reserve has kept interest rates unchanged earlier this month and indicated that there would be no more rate hike this year, after announcing in December that two could have place.

Elsewhere, the uncertainty surrounding the Brexit will also be the subject of careful follow-up. The Friday deadline for the European Union's exit from the United Kingdom has been extended from two weeks to 12 April.

If lawmakers refuse to approve the agreement for the third time, a number of options, including a Brexit without agreement, will open.

Trade developments between the United States and China should also be the focus of the debate as senior US and Chinese officials gather in Beijing this week to deepen their trade negotiations.