Gold holds the bounce above $3,000 amid Asia risk-off profile
Gold price recovers ground above $3,000 in the Asian session on Monday. The global market turmoil extends and hence, Gold buyers manage to find their feet as trade war and recession risks escalate and revive the haven demand for the yellow metal after Friday's 'sell everything' mode.
Gold price (XAU/USD) trades with a negative bias for the second straight day on Friday, though it lacks follow-through selling and trades around the $3,100 mark heading into the European session. As investors digest US President Donald Trump's new tariffs, traders now seem reluctant to place fresh bullish bets around the precious metal and opt to wait for the release of the US Nonfarm Payrolls (NFP) report. This, along with a modest intraday US Dollar (USD) bounce, turn out to be a key factor exerting some pressure on the commodity.
Meanwhile, investors remain worried that Trump's sweeping reciprocal tariffs could dent global economic growth and trigger a US recession. This might force the Federal Reserve (Fed) to resume its rate-cutting cycle soon and continue to drag the US Treasury bond yields, which should cap any meaningful USD recovery and act as a tailwind for the non-yielding Gold price. Hence, it will be prudent to wait for strong follow-through selling before confirming that the XAU/USD has topped out and positioning for a deeper corrective fall.
Source: Fxstreet
