25.03.201907:22:00UTC+00Gold Rises As Recession Fears Spur Risk Aversion

Gold prices rose on Monday, as weak data deepened fears about faltering global growth, risks of a disorderly Brexit mounted and investors looked forward to another round of high-level negotiations set to begin in Beijing this week.

Spot gold rose 0.25 percent to $1,316.41 per ounce while U.S. gold futures gained 0.3 percent to $1,322.35 an ounce.

Weak economic data from the euro zone and the U.S. added to fears of a global slowdown, weighing on risk sentiment.

Meanwhile, 10-year treasury yields slipped below the three-month rate for the first time since 2007, raising the chances of U.S. going into a recession.

It is believed that an inverted yield curve - where long-term rates fall below short-term - will put a damper on bank lending profits.

Chicago Federal Reserve Bank President Charles Evans said today that he didn't expect any interest rate hikes until the second half of next year as downside risks take hold.

On the Brexit front, British Prime Minister Theresa May is fighting to stay in power in the face of a reported coup after a government minister warned MPs of a potential general election.

The U.K. House of Commons will tonight vote on whether to seize control of Brexit from May.