Gold price reverts toward $3,200 early Monday, correcting from record highs.
The US Dollar holds the bounce amid upbeat mood and the latest tariff news.
Gold price looks to Fedpeak and Chinese trade data for near-term trading impetus.
Gold price is back in the red early Monday, snapping a three-day record rally to lifetime highs of $3,245 set on Friday.
Gold price corrects on improved risk sentiment
Safe-haven flows appear to have eased in Asian trading on Monday as traders rejoice in Wall Street's turnaround on Friday alongside some positive updates on the US-China tariff war, alleviating the bullish pressure on the Gold price for now.
On Friday, China responded to the US tariff hike to 145% by raising tariffs on American goods to 125%. However, Beijing said it would ignore further US responses.
Over the weekend, US President Donald Trump considered imposing 20% tariffs on Chinese semiconductors and the electronics supply chain against the previously announced 145% levies.
These tariff updates seem to be perceived positively by markets, as they provide some consolation and allow a modest recovery in the US Dollar against its major currency rivals from 35-month lows.
The US Dollar uptick and risk appetite keep the corrective downside intact in Gold price as traders await China’s Trade Balance report and speeches from several US Federal Reserve (Fed) policymakers for further trading impetus.
Markets could use the excuse of not-so-steep tariffs on Chinese electronics and chips to take profits off the table following the recent Gold price upsurge.
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