Gold price struggles to capitalize on intraday recovery from multi-week low; remains below $3,050
Gold price (XAU/USD) attracts some buyers near the $2,972-2,971 area, or a nearly four-week low touched earlier this Monday, and for now, seems to have stalled its retracement slide from the all-time peak touched last week.
A broader meltdown across the global financial markets, triggered by US President Donald Trump's sweeping reciprocal tariffs announced last week, offers some support to the safe-haven commodity. Adding to this, data published earlier today showed that the People’s Bank of China (PBOC) increased its state Gold reserves for the fifth straight month, which further acts as a tailwind for the commodity.
The anti-risk flow, along with expectations that a tariffs-driven US economic slowdown might force the Federal Reserve (Fed) to resume its rate-cutting cycle soon, leads to a further steep decline in the US Treasury bond yields.
This, in turn, fails to assist the US Dollar (USD) to build on Friday's move higher from a multi-month low. This, along with persistent geopolitical risks, turns out to be another factor benefiting the non-yielding Gold price.
Traders, however, continue to liquidate their long positions and raise cash to cover losses elsewhere, which, in turn, caps the upside for the precious metal and warrants some caution.
Source: FXstreet
