Gold Rebounds After Two-Day Slump
Gold prices surged sharply on Tuesday, rebounding after being hit by a deep correction for the previous two days. Spot gold rose around 5% to $4,901/ounce—marking its biggest daily surge since November 2008—after touching $4,405/ounce the day before.
The main trigger was a combination of profit-taking following an overheated rally (gold had previously broken a record above $5,600/ounce) and a position-cleaning effect after the market digested Donald Trump's nomination of Kevin Warsh to lead the Federal Reserve. The market believed Warsh could still leave room for rate cuts, but be more disciplined about the balance sheet, which initially boosted the dollar and pressured gold—then led to a rebound when selling pressure subsided.
To add insult to injury, the Bureau of Labor Statistics delayed the release of its payroll report due to the partial shutdown, leaving the market without a data compass and making volatility susceptible to headlines.
From a geopolitical perspective, attention remains focused on the United States-Iran talks and the dynamics of the Russia-Ukraine war—two themes that could quickly lead to a renewed demand for gold during a sudden risk-off market.
Current price update: gold is around $4,939/ounce (live spot). (alg)
Source: Newsmaker.id
