Gold experienced a significant rebound, rising above $4,900 per ounce after a sharp decline in the previous sessions. This recovery is attributed to bargain hunting following a period of heavy selling triggered by the news of Kevin Warsh’s potential nomination as Federal Reserve Chair and other factors impacting risk sentiment.
- Gold rose more than 5% to above $4,900 per ounce.
- The rise followed two consecutive sessions of heavy selling.
- President Trump nominated Kevin Warsh as the next Federal Reserve Chair, viewed as more hawkish.
- Trump cut tariffs on India after Prime Minister Modi agreed to end Russian oil purchases.
- US and Iran are set to meet for talks to de-escalate tensions.
- The CME Group raised margin requirements on precious metals futures.
- US ISM Manufacturing PMI was positive.
- Key US labor market data is set to be delayed.
The developments suggest a complex interplay of factors influencing gold’s price. While the potential appointment of a hawkish Federal Reserve Chair and positive economic data could limit gains, the de-escalation of geopolitical tensions could reduce gold’s safe-haven appeal. Changes in margin requirements may also influence trading activity. The delay of crucial labor market data introduces further uncertainty into the market.