Gold is approaching the fifth consecutive week of growth

Today, on January 20, gold prices are fluctuating around their highest levels for the past nine months. The precious metal has been rising for nearly five weeks in a row. This rise was driven by the increased interest in so-called safe haven assets, as well as the uncertainty of the U.S. Federal Reserve’s (Fed’s) monetary policy.

The day before, gold prices jumped by almost 1.5%. The stock market, on the contrary, fell amid weak corporate reports and softer economic data, which increased fears of a recession.

Gold prices experienced strong pressure from the Fed’s hawkish policy and aggressive interest rate hikes last year. Currently, the outlook for their peak is still quite uncertain, and markets are stressed. According to various estimates, the rates might rise from 5% to nearly 6%. The prospects of lower hikes are rather positive for gold.

Over the past weeks, rising fears of a global economic downturn have supported demand for gold as a defensive asset. Thus, the risk of the recession also contributed to the precious metal’s rise.