Many analysts see the first signs of a coming recession — some say we’re already in one. By the traditional definition, two consecutive quarters of a slowing economy, the Bureau of Economic Analysis data says we are. So why has gold, the classic refuge, been behaving strangely?
Inflation cools, markets cheer
July’s CPI showed inflation dropping to 8.5% from June’s 40-year record of 9.1%, driven largely by falling fuel costs. The Dow rose 1.5% on the news, and many expected the Fed to scale back its anticipated September rate hike.
Gold holds the $1,800 line
That combination would normally make gold less desirable — yet it held steady just below $1,800, supported by a dropping U.S. dollar. The coming days matter: $1,800 is an important resistance level, and markets are still digesting the inflation and dollar moves.
Why $1,800 matters: resistance levels are where sellers and buyers have historically fought to a draw — holding one in bad news is itself a bullish signal.
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