Gold rises on recession concerns

Gold rose on Wednesday as renewed fears of a recession bolstered bullion’s allure as a safe haven and countered pressure from a firmer dollar, while investors awaited monetary policy cues from the Federal Reserve, Reuters reported.

Spot gold reversed initial declines to rise 0.4 percent to US$1,839.86 per ounce by 1145 GMT, while U.S. gold futures gained 0.2 percent to US$1,841.70.

World stocks fell as concerns of rising interest rates and recession persisted. Adding to this, soaring food prices pushed British consumer price inflation to a 40-year high of 9.1 percent last month.

Higher interest rates increase the opportunity cost of holding non-yielding gold. Silver fell 0.9 percent to US$21.47 per ounce, platinum dropped 0.2 percent, to US$935.75. Palladium inched 0.4 percent higher to US$1,884.34.