Gold prices hedged up during early Tuesday trading

Gold prices hedged up during early Tuesday trading, revisiting the six-month high touched during the previous session. The precious metal is seeing an increase in demand, as expectations of an economic cooling down and that the Fed is done hiking rates drive gains in the bond market and dollar depreciation. With treasury yields falling, the opportunity cost of holding bullion decreases, making it more attractive for investors. At the same time, rising expectations of an economic downturn offer additional support for the haven gold. Against this scenario, gold risk will likely remain tilted to the upside.

Ricardo Evangelista – Senior Analyst, ActivTrades