Gold Recovers from One-Month Low but Stays Below $3,150 Ahead of US PPI and Powell

Gold Recovers from One-Month Low but Stays Below $3,150 Ahead of US PPI and Powell Speech

Gold (XAU/USD) prices saw a modest rebound on Thursday, recovering around $20–$30 from their April 10 low. However, the yellow metal remains under pressure and trades below the $3,150 level during early European hours, still down approximately 1% on the day.

A weaker U.S. Dollar (USD) offered temporary relief to gold as traders held off on major positions ahead of two key events: the release of the U.S. Producer Price Index (PPI) data and a speech by Federal Reserve Chair Jerome Powell. The lack of buying interest in the greenback reflects investor caution before fresh economic signals.

Despite this recovery, several factors continue to weigh on gold. Optimism surrounding de-escalation in the U.S.-China trade relationship is undermining demand for safe-haven assets like gold. In parallel, rising U.S. bond yields make the non-yielding metal less attractive in comparison.

Adding to the downside pressure, expectations for aggressive interest rate cuts from the Fed have diminished, as recession fears in the U.S. economy appear to ease. That shift has removed some of the bullish momentum gold had enjoyed in recent months.

Still, a sharp drop in global equities indicates some deterioration in broader risk sentiment, which may be limiting gold’s downside for now. Until there is a clearer signal from incoming U.S. economic data or central bank policy, traders are likely to remain cautious.

In short, gold’s recent correction may not be over, and further movement will likely hinge on whether Powell’s comments and the PPI report reinforce or challenge current market sentiment.