Gold regained $1,800 with new gains of 1.7%

Gold regained the psychological level of $1,800 today as investors appeared to refocus on signs of an impending recession.

In particular, the contract of December of gold ended trading at $1,806.9, up 1.7%, marking its highest close since June 30.

The decline in US government bond yields combined with the weakening of the dollar gave the precious metal the impetus to extend its recent uptrend, further activating buyers, especially holders of other currencies.

Meanwhile, Fed officials in a barrage of statements over the past two days have pointed to a more dovish stance by the Bank, which has led to a 58-42 lead in bets for a 50 basis point rate hike in September versus a larger 75bp.

Remember that interest rates work in competition with gold, which does not offer a consistent return on investment and has come under significant pressure since the Fed began its current ultra-aggressive tightening cycle.

At the same time, investors await the July payrolls report tomorrow, which will show whether the labor market, which has been the engine of the economy in the face of the recession, maintains its momentum.

As for the rest of the metals, the silver for September delivery increased by 32 cents, or 1.6%, to $20.12 per ounce, while significant gains were recorded by palladium for September delivery, up 3.4% or $69.60 to settle at 2,077.50 an ounce.

The October delivery contract for the platinum climbed $36.40, or 3.9%, to close at $924.90 an ounce and the copper for September delivery gained 1 cent to settle at $3.48 a pound.