Gold starts the week pretty much unchanged from Friday’s closing levels with the precious metal changing hands around $1,775/oz. Friday’s out-sized US NFP release (+528k new jobs vs. +250k expectations) sent gold tumbling and stopped the recent rally in the precious metal in its tracks. Gold has added over $100/oz. since July 21 as longer-dated US Treasury yields tumbled on growing recession fears. The closely watched UST2/10s yield spread is currently quoted around minus 40 basis points, a strong clue from the fixed income market that a recession is on the way in the US, whatever definition is used.
