Gold prices end stable amid growing recession fears in US

Gold prices stabilized at settlement today, July 25, as markets assessed economic data that reflected high consumer expectations of a recession in the US, with the start of the US central bank's policy meeting.

The yellow metal’s prices tumbled in early trading after the US dollar index and US Treasury bond yields recorded gains. This came in light of expectations that the Federal Reserve will raise interest rates by 25 basis points during the July meeting, which issues its decision on July 26.

Bullion prices, however, increased after the release of the Conference Board Index survey, which reflected this month’s growing consumer forecasts to 70.6% from 69.9% in June of a recession in the US over the next 12 months.

Financial markets are awaiting Fed Chairman Jerome Powell's speech on July 26, followed by the European Central Bank and Bank of Japan’s monetary policy decision July 27 and July 28, respectively.

At settlement today, gold for August delivery settled at $1,963.7 an ounce, after touching $1,951.6 per ounce in early trading.

The US dollar index, which measures the performance of the US currency against a basket of six major currencies, also kept flat at 101.42 points at 8:41 pm Makkah time, after rising earlier to 101.65 points.