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Gold and silver have stumbled to start the week, with October gold futures below $1,800 and September Comex silver futures at $0.44.

The stumble is likely due to sluggish economic data from China, which has added to fears of a global economic recession. China has been hampered by COVID lockdowns and reduced demand for commodities, including precious metals.

“Gold is struggling to shine this morning amid a stabilizing dollar and concerns about China’s physical demand for the precious metal amid slowing economic growth,” FXTM senior market analyst Lukman Otunuga told CNBC.

UK inflation figures for July are top of mind as investors see potential for more bleak global economic news. Rupert Rowling, market analyst at Kinesis Money, said what’s happening in the US is a much bigger driver for gold, noting that “Federal Reserve actions far outpace the Bank of England by regarding the impact on gold prices.”

Domestic news is also tearing up the yellow metal, with manufacturing data from New York state adding to the worries. “The US Empire data was rotten and has reminded the Fed that they need to be very careful with their monetary policy as the US economy has been put on emergency brakes,” said Naeem Aslam , chief market analyst at Ava Trade.

Gold continues to face a stronger dollar, making it more expensive for buyers, but the long-term outlook for the yellow metal remains solid. In times of uncertainty, investors tend to look to gold as a store of value. While the yellow metal has faced a myriad of unusual headwinds this year, its historic ability to perform in the second half of an inflationary period could mean the long-awaited breakout is just around the corner. Sprott’s Paul Wong recently noted in a recent outlook that “The recessionary shock and its associated risks have yet to be fully priced in, and we expect gold buying to resume along with short hedging.”

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