Gold is trading higher as stagflation fears bite, suggesting inflation may remain elevated amid slower growth.
The nomination of Kamala Harris as the Democrat presidential candidate further aids Gold as her policies are seen as less inflationary.
Gold is potentially unfolding a down-leg within a widening sideways trading range.
Gold (XAU/USD) recovers for a second day in a row, trading back up in the $2,410s as “stagflation” fears mount. The term, which describes above-trend inflation coupled with weak growth and jobs data, is a portmanteau of “stagnant” and “inflation”. Economists are applying it to the current environment following the release of the Philadelphia non-manufacturing Business Outlook Survey, which combined a weak headline and a high prices paid component. At the same time, US Existing Home Sales fell 5.4% month-over-month in June – further evidence of a slowdown – according to analysts at Rabobank.
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