Gold Prices Rebounded Sharply From Multi-Week Lows
Gold (XAU/USD) prices staged a decent intraday rally from a three-week low of around $2,972-$2,971 region, touched during the Asian session on Monday (April 7) and surged to a fresh intraday high of around $3,055 area in the last hour. Data released earlier today showed that the People’s Bank of China (PBOC) increased the country’s gold reserves for the fifth straight month. Adding to this, the prevailing risk-off sentiment, recession fears, bets that a tariff-driven US economic slowdown could force the Federal Reserve (Fed) to resume its interest rate-cutting cycle soon, and geopolitical risks acted as tailwinds for the commodity.
However, the intraday uptick faded rather quickly as investors continued to unwind their bullish XAU/USD positions to cover losses from the broader sell-off across the global financial markets. Meanwhile, Friday’s stronger-than-expected US Nonfarm Payrolls (NFP) report and Fed Chair Jerome Powell’s hawkish remarks helped the US Dollar (USD) hold comfortably above the multi-month lows touched last week. This turned out to be another factor that capped the upside in Gold prices. However, dovish Fed expectations kept USD investors on the defensive and helped Gold prices hold above the $3,000 mark.
Source: FXXStreet
