Gold Prices Rebound but Remain Vulnerable Amid US Jobs Data and Rate Hike Expectations

Gold prices attempted to recover from an eight-week low of $4,110 on Monday but remain vulnerable due to ongoing US jobs data and interest rate hike expectations.

The sharp sell-off was paused early Tuesday as sellers took a breather, with the US Dollar entering a phase of bullish consolidation alongside US Treasury bond yields. The global bond rout deepened on Monday, bringing the monthly sell-off to its heaviest in two years and sending the benchmark 10-year US Treasury yield to a 19-year high above 5.27%.

The soaring yields triggered a massive meltdown in global stocks, making them less attractive as an alternative investment, leading to a 'sell everything' mode that crushed gold prices by almost 4%. Investors liquidated their gold long positions to cover losses in bond and stock markets.