Gold Rallies As Recession Worries Mount

Gold prices rose more than 1 percent on Wednesday, drawing support from recession worries after former New York Federal Reserve President William Dudley said a recession is likely because of what the Fed has to do.

Spot gold jumped 1.2 percent to $1,861.51 per ounce, while U.S. gold futures were up 1.2 percent at $1,867.45.

A U.S. recession is pretty likely as the Fed becomes more aggressive in its pursuit to curb inflation, Dudley said in an interview with Bloomberg on Tuesday.

U.S. ISM manufacturing PMI for December and the Fed minutes from the December 13-14 meeting will be published in the U.S. trading session.

The Labor Department will publish its jobs report for December on Friday, with economists expecting a payroll gain of 200,000 jobs last month.

Elsewhere, China COVID worries persist, with Japan announcing it would tighten borders controls for travelers from China, in response to a surge of infections among such visitors.

With hospitals overwhelmed and medical supplies running low, markets remain apprehensive about the future steps of policymakers in China.