Gold: XAU/USD bounces towards $4,800, remains bearish on the day

LONDON (February 2) Gold (XAU/USD) is trimming some losses on Monday after the sharp bearish correction witnessed on Friday and Monday’s Asian session. The precious metal has returned to levels near $4,800, trading at $4,766 at the time of writing, but still about 15% below Thursday's highs above $5,600.

US President Donald Trump’s announcement of former Federal Reserve governor Kevin Warsh as the replacement for Jerome Powell triggered a reversal that appears to have caused a short squeeze in precious metals. Reuters reported that CME Group has hiked margin requirements for precious metal trades, which only accelerated Gold and Silver’s sell-off.

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