Gold price (XAU/USD) attracts some sellers near the $3,055 support-turned-resistance and stalls its intraday recovery from the $2,972-2,971 area, or a nearly four-week low touched earlier this Monday. Investors continue to unwind their bullish positions to cover losses from a broader meltdown across the global financial markets, which acts as a headwind for the precious metal. That said, an extended sell-off in the equity markets, triggered by US President Donald Trump’s sweeping reciprocal tariffs announced last week, offers some support to the safe-haven commodity.
Meanwhile, data published earlier today showed that the People’s Bank of China (PBOC) increased its state Gold reserves for the fifth straight month. Adding to this, the emergence of fresh US Dollar (USD) selling, triggered by bets that a tariffs-driven US economic slowdown might force the Federal Reserve (Fed) to resume its rate-cutting cycle soon, lends additional support to the non-yielding Gold price. This, along with persistent geopolitical risks, warrants caution before positioning for an extension of the XAU/USD pair’s pullback from the all-time top touched last week.
