• Gold is trading higher as stagflation fears bite, suggesting inflation may remain elevated amid slower growth. 
• The nomination of Kamala Harris as the Democrat presidential candidate further aids Gold as her policies are seen as less inflationary. 
• Gold is potentially unfolding a down-leg within a widening sideways trading range. 

Gold (XAU/USD) recovers for a second day in a row, trading back up in the $2,410s as “stagflation” fears mount. The term, which describes above-trend inflation coupled with weak growth and jobs data, is a portmanteau of “stagnant” and “inflation”. Economists are applying it to the current environment following the release of the Philadelphia non-manufacturing Business Outlook Survey, which combined a weak headline and a high prices paid component. At the same time, US Existing Home Sales fell 5.4% month-over-month in June – further evidence of a slowdown – according to analysts at Rabobank.