'Recession fear' has made a comeback and gold is benefiting, says Goldman

Bullion is heading for the first monthly gain in seven after equities slumped and trade-war concerns festered, hurting the outlook for growth

Goldman Sachs Group Inc. says that “fear” has made a comeback and gold is benefiting as stocks slide and investors fret more about the possibility that the U.S. economy may tumble back into recession.

Bullion’s recent advance “happened on the back of the market sell-off and spike in volatility,” analysts including Mikhail Sprogis and Jeffrey Currie, wrote in a report dated Oct. 30. “In our view, it represents a rebound in fear-related demand for gold with ETFs beginning to build after several months of declines.”

Bullion is heading for the first monthly gain in seven after equities slumped and trade-war concerns festered,