Gold Steady Around $1240 Supported by Slowdown Fears

Gold prices were steady on Thursday, supported by renewed worries about a global economic slowdown, but bullion’s failure to rally at a time of extreme volatility in equity and energy markets suggested the metal could pull back in the near term.

Economic growth fears hit demand expectations for industrial metals and palladium, which is used mostly by the automobile industry as a catalytic converter. Palladium dropped 5 percent briefly before paring losses.

Gold was underpinned after James Bullard, president of the St. Louis Fed and a top U.S. central banker, said the Fed should keep buying bonds for longer than planned in the face of volatile markets and falling inflation expectations, even as another Fed policymaker warned against over-reaction.


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