Gold tumbled after closing above $2,000 last week as investors weighed in on Friday’s U.S. jobs report, which bolstered the possibility of another Fed rate hike.
Spot gold hit below $2,000 on the first trading day of the week.
The precious metal rose to a record $2,075 as the banking crisis and growing concerns about global growth boosted demand for safe assets.
On the other hand, the signs that the economy is cooling down and the Fed’s increasing pricing that will ease the monetary tightening path also had a positive effect on non-interest-bearing gold.
On the other hand, while the salary data for March drew a picture of the strength of employment, it increased the possibility of the Fed’s waiting ready to intervene in its efforts to rein in inflation.
Investors are expecting more clues to the strength of the economy this week, with US inflation and the minutes of the Fed’s latest meeting to be released on Wednesday.
As China increased its gold reserves for the fifth consecutive month, it contributed to the efforts of central banks in the world to increase their precious metal reserves.