Gold holds near $3,000 as US spending data adds to economy slowdown concerns

Gold held near $3,000 an ounce as investors weighed US data that fueled concerns about an economic slowdown, adding to the precious metal’s haven appeal.

Gold held near $3,000 an ounce as investors weighed US data that fueled concerns about an economic slowdown, adding to the precious metal’s haven appeal.

Gold bullion traded just below an all-time high, following a 0.6% gain on Monday.(Representative Image)

Bullion traded just below an all-time high, following a 0.6% gain on Monday. US retail sales rose less than forecast in February, and the previous month was revised down to mark the biggest drop since July 2021. Yields on 10-year Treasuries fell, also helping to boost non-interest bearing gold.

While the figures pointed to weak spending on goods, there was no sign of a severe pullback and the data did little to alter traders’ bets on expectations for Federal Reserve rate cuts. Still, companies, investors and economists remain cautious as consumer sentiment sours and signs of financial stress mount, amid risks of escalating trade wars sparked by US President Donald Trump.

The gloomier outlook for both the US and global economy has underscored bullion’s role as a store of value in uncertain times. The metal is up more than 14% so far this year, extending its strong annual advance in 2024. Several major banks have hoisted their price targets for this year higher in recent weeks.

Spot gold was little changed $3,001.46 an ounce at 8:14 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver edged lower, while platinum and palladium were steady.