Gold Recovering With Renewed Fears of a Slowdown in recovery

Gold rose on Thursday, August 20, offsetting some of the losses caused by a wave of selling in the previous session, after the US Federal Reserve raised fears that the recovery from the economic downturn resulting from the outbreak of the Coronavirus is facing a blue future, which has cast a shadow on risk sentiment.

By 05:37 GMT, spot gold increased 0.7% to $ 1943.07 an ounce, after falling more than 3.5% to its lowest level in about a week on Wednesday. US gold futures fell 1% to $ 1950.30 an ounce.

On Wednesday, the US Federal Reserve warned that the economic slowdown caused by the Covid-19 pandemic was facing a highly uncertain path and reiterated the need for additional fiscal stimulus. These comments led to a decline in US and Asian stocks.

As for the rest of the precious metals, silver rose 1.1% to $ 27.01 an ounce, while platinum jumped 0.3% to $ 934.71. Palladium rose 0.5% to $ 2167.52.