Gold Price Sees Dead Cat Bounce Ahead of US Jobs Data
Gold has attempted to recover from its eight-week low of $4,110 but remains vulnerable to further downside risks. The metal's price has seen a 'dead cat bounce' as sellers take a breather ahead of the US jobs data release on Friday.
The recent sell-off in global stocks and bond markets has made Gold less attractive as an alternative investment, leading to a sharp decline in its price. Investors have liquidated their Gold long positions to cover their losses in other markets, exacerbating the metal's price drop.
Meanwhile, the US Federal Reserve's (Fed) interest rate hike expectations have surged, with markets pricing in a 70% chance of a rate increase in October. This has strengthened the US Dollar and put pressure on non-yielding assets like Gold.