Gold is losing its sparkle, yet the economy cheers

With rising fears about the US-China trade war and an imminent global recession, investors sought safety in assets like precious metals and sovereign bonds to hedge the risk against unfavorable market conditions. Gold prices move inversely with inflation, and bonds are perceived to be a safer bet as the risk of default is lower than equities. In recent months, demand for gold has risen as global outlook looks increasingly pessimistic. That trend, perhaps comfortingly, started to falter last week.

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