Gold Holds Steady As Recession Worries Mount

Gold prices held steady on Thursday as U.S. Treasury yields slipped on worries about a recession.

Global sentiment turned fragile as a surge in COVID cases in China offset investor optimism over the reopening of the economy.

Italy, Japan, Taiwan, India and the United States have imposed mandatory tests for Chinese travelers amid concerns over the spread of infections.

Spot gold edged up 0.2 percent to $1,808.74 per ounce, while U.S. gold futures were little changed at $1,815.80.

The yield on the 10-year Treasury slipped by over 2 basis points to 3.8599 percent and the 2-year Treasury yield eased by around 1 basis point to 4.3491 percent, as investors awaited the publication of weekly initial jobless claims data later in the day for fresh insights into the U.S. labor market.

Next week’s closely watched monthly jobs report as well as the release of the minutes of the Fed’s December meeting due next Wednesday could shed additional light on the outlook for interest rates and the economy.

Bond markets will close early on Friday and remain closed on Monday for New Year’s Day.