Gold added to yesterday’s gains overnight. In the early hours of Sunday, as trade began for the new week, gold dropped below $3,250 to hit its lowest level in over four weeks. But that turned out to be the low as gold found some buyers and went on to firm up steadily throughout yesterday’s session.
Yesterday evening, gold broke back above $3,300 and went on to close near its daily high. It retested $3,300 this morning, and the level held as support. It seems odd that gold should be making these gains as equity investors are in full ‘risk-on’ mode.
Source: TN Trader
Yet there still appears to be an appetite for diversifying into gold as a ‘safe-haven’. Gold is also getting some help from the weaker dollar. But investors should act cautiously now as the US dollar looks very stretched to the downside.
Despite the recent rebound, gold remains well off its all-time high of $3,500 hit back in April. There are plenty of potential catalysts for the market this week. In addition to geopolitical events, there’s also US data, particularly Thursday’s Non-Farm Payroll report, along with the passage of President Trump’s ‘Big, Beautiful Bill’.
Fed Chair Powell will participate in a ‘Policy Panel’ this afternoon, as part of the ECB’s Forum on Central Banking currently taking place in Sintra, Portugal. Could this trigger an additional broadside against Mr Powell from President Trump?
