Monday, 21 July 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Gold price rebounds swiftly from multi-week low; lacks follow-through
Monday, 7 April 2025 12:48 WIB | GOLD |GOLD

Gold price (XAU/USD) stages a goodish intraday bounce from a three-week low, around the $2,972-2,971 region, touched during the Asian session on Monday – and spikes to a fresh daily high, around the $3,055 area in the last hour. Data published earlier today showed that the People's Bank of China (PBOC) increased its state Gold reserves for the fifth consecutive month. Adding to this, the prevalent risk-off mood, recession fears, bets that a tariffs-driven US economic slowdown might force the Federal Reserve (Fed) to resume its rate-cutting cycle soon, and geopolitical risks act as a tailwind for the commodity.

The intraday move up, however, fades rather quickly as investors continue to unwind their XAU/USD bullish positions to cover losses from a 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) to hold comfortably above a multi-month low touched last week. This turns out to be another factor capping the gains for the Gold price. That said, dovish Fed expectations keep the USD bulls on the defensive and assist the Gold price to hold above the $3,000 mark.

Gold price draws support from a combination of factors; bulls seem reluctant to place aggressive bets
The widening global trade war continues to fuel concerns about a global economic recession and leads to an extended sell-off in equity markets across the world. This, in turn, prompted traders to liquidate their long positions around the Gold price and raise cash to cover losses elsewhere.
According to data released this Monday, the People's Bank of China (PBOC) added gold to its reserves for a fifth consecutive month in March. In fact, the People's Bank of China's holding rose by 0.09 million troy ounces last month amid rising global trade and geopolitical turmoil.

US President Donald Trump imposed reciprocal tariffs of at least 10% on all imported goods late last Wednesday, with China facing 54% levies under this new regime. In response, China's Commerce Ministry announced on Friday that they will levy additional tariffs of 34% on all US imports.
Meanwhile, US Commerce Secretary Howard Lutnick confirmed on Sunday that the tariffs would not be postponed and the policy would remain in place for days and weeks. Adding to this, Trump stated that there would be no deal with China unless the trade deficit is solved.

The US Dollar struggles to capitalize on Friday's modest recovery move from a multi-month low that followed the release of the better-than-expected US Nonfarm Payrolls (NFP) report. In fact, the closely-watched jobs data showed that the economy added 228K jobs in March vs. 117K previous.
Meanwhile, Federal Reserve (Fed) Chair Jerome Powell said that that inflation is closer to target but still slightly elevated. Powell added that Trump's tariffs could have a strong inflationary impact and that the Fed's job is to avoid temporary price hikes turning into persistent inflation.
Investors, however, are still pricing in the possibility that the US central bank will resume its rate-cutting cycle in June and also lower borrowing costs at least four times this year. This, along with the anti-risk low, keeps the yield on the benchmark 10-year US government bond below the 4.0% mark.

This, in turn, holds back the USD bulls from placing aggressive bets and assists the non-yielding yellow metal to stage a modest intraday bounce from a nearly four-week low touched during the Asian session on Monday. The lack of follow-through, however, warrants caution for bulls.

Source: Fxstreet

RELATED NEWS
Gold prices rise amid uncertainty over U.S. trade negotiations...
Monday, 21 July 2025 18:38 WIB

Gold prices rose slightly in European trade on Monday, taking some support from haven demand fueled by persistent uncertainty over elevated U.S. tariffs set to take effect in the coming weeks. A mild...

Gold gains on softer dollar as investors await US trade updates ...
Monday, 21 July 2025 13:39 WIB

Gold prices climbed on Monday, supported by a weaker dollar as investors monitored developments in U.S. trade talks and awaited potential market-moving catalysts, including the Federal Reserve's polic...

Gold steady as investors await US trade updates, central bank meetings ...
Monday, 21 July 2025 11:20 WIB

Gold prices were little changed on Monday as investors monitored developments in U.S. trade talks and awaited potential market-moving catalysts, including the U.S. Federal Reserve's policy meeting sch...

Gold Price Forecast: XAU/USD trades with mild gains near $3,350 on tariff uncertainty ...
Monday, 21 July 2025 07:49 WIB

The Gold price ( XAU/USD) trades with mild gains near $3,350 during the early Asian session on Monday. Uncertainty around trade talks is likely to support Gold's safe-haven demand as a tariff deadline...

Gold price rises past $3,350 on Waller's dovish comments, soft US Dollar...
Saturday, 19 July 2025 01:40 WIB

Gold price advances during the North American session on Friday as the US Dollar weakens, with traders booking profits ahead of the weekend. Additionally, a Fed Governor's comments turned more dovish ...

LATEST NEWS
US Dollar slips as trade tensions flare, Fed uncertainty weigh on sentiment

The US Dollar (USD) kicks off the week on the back foot, slipping against major currencies in Monday trading. Investors are reacting to renewed trade tensions ahead of the August 1 deadline and a generally cautious market sentiment. Despite mostly...

Indonesia says U.S. tariff on its goods could come into effect before August

Indonesia's chief economic minister Airlangga Hartarto said Monday that a 19% tariff on Indonesian goods entering the United States could be implemented earlier than the August 1 deadline set by U.S. President Donald Trump. Airlangga noted that...

Gold prices rise amid uncertainty over U.S. trade negotiations

Gold prices rose slightly in European trade on Monday, taking some support from haven demand fueled by persistent uncertainty over elevated U.S. tariffs set to take effect in the coming weeks. A mild pullback in the dollar, after a two-week...

POPULAR NEWS
Waller says he's willing to lead Fed if Trump asks, but no contact so far
Saturday, 19 July 2025 02:16 WIB

Federal Reserve Governor Chris Waller, an advocate for an immediate interest rate cut, said on Friday he would accept the job as head of the U.S....

Fed's rate-cut delay intact as inflation fears override Trump pressure
Friday, 18 July 2025 23:28 WIB

The case for a U.S. interest rate cut remains unresolved as Federal Reserve officials head into their policy meeting later this month, with data...

S&P 500, Nasdaq Pull Back from New Highs
Friday, 18 July 2025 23:38 WIB

The S&P 500 briefly touched an all-time high before hovering flat in the afternoon session, while the Nasdaq dipped 0.2% as investors weighed...

US Stocks Mostly Flat as Trump Pushes EU Tariffs
Saturday, 19 July 2025 03:38 WIB

Stocks in the US closed near the flatline on Friday as investors weighed President Trump's push for higher tariffs on the European Union against...