Gold Edges Lower As Dollar Rebounds

Gold traded slightly lower on Tuesday but held above $1,900 per ounce as recession worries mount.

Spot gold dipped 0.4 percent to $1,907.24 per ounce, while U.S. gold futures were down 0.6 percent at $1,909.40.

The dollar edged higher in European trade after having hit a seven-month low in recent sessions amid expectations that the Federal Reserve might be nearing the end of its rate-hike cycle.

Global growth worries resurfaced after China posted its weakest economic growth in nearly half a century.

IMF Managing Director Kristalina Georgieva said at the World Economic Forum in Davos, Switzerland that global economic growth will bottom out this year.

The focus now shifts to the Bank of Japan’s policy-setting meeting on Wednesday amid speculation the central bank might call for an exit from its decade-long ultra-loose monetary policy on Wednesday.

On the U.S. economic front, traders will keep an eye on reports on producer prices, retail sales, industrial production, housing starts and existing home sales this week for additional clues on the economic outlook.