Gold News

Gold outlook buoyed amid new recession fears

The long-term outlook for gold prices could be buoyed by suggestions that the US economy is once again in difficulties.

Reports suggest that the dollar has weakened further, having hit a one-month low earlier today (May 27th), reports Commodity Online.

Former US Federal Reserve chairman Alan Greenspan told the Financial Times that "there is a greater than 50 per cent probability of recession".

Traders are now speculating that the US Federal Reserve will step in to cut interest rates as it has done previously, which could further improve prospects for those looking to make a gold investment.

Many economists are in agreement that the US will experience a recession in 2008 as a result of the sluggish property market and the credit crunch.

In related news, crude oil prices have hit a record high of $133 a barrel, which could have positive implications for gold prices since the two commodities usually operate in tandem.

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