Gold achieves slight gains as bulls buy the dip

Gold prices have recovered modest overnight losses and are holding slight gains in early US trading session on Tuesday. Gold is seeing some buying interest from bargain hunters buying the dip and as US Treasury yields have declined a bit this week. At the time of typing, gold is trading at $1997.70 per ounce.

Gold is seeing some buying interest from bargain hunters and as US Treasury yields have declined a bit this week. However, a higher US dollar index and lower crude oil prices are negative daily influences on the metals markets that are limiting buying interest in gold. Global stock markets were mostly lower overnight and US stock indexes are pointed toward lower openings when the New York day session begins. Risk appetite has not been strong recently, amid worries about a “higher for longer” Fed interest rate cycle.

There are still marketplace concerns about a US economic recession being on the doorstep. The precious metals market bulls have been focused more on the bearish aspects of global economic weakness meaning less demand for metals. The banking sector’s crisis that roiled the marketplace in March has simmered down, but there are worries banking problems will resurface.