FX.co ★ Gold Rebounds After Sharp Selloff

Gold surged over 3% to approximately $4,820 per ounce on Tuesday, as opportunistic buying followed two days of significant sell-offs. The precious metal had experienced a nearly 5% drop in the previous session, continuing the downward trend from Friday, which represented its most pronounced decline in over a decade. The recent downturn was sparked by the announcement of President Trump's nomination of Kevin Warsh as the potential next Chair of the Federal Reserve. Warsh's perceived hawkish stance compared to other candidates heightened concerns about a possible shift towards stricter monetary policy. Despite the recent volatility, gold maintained support from substantial central bank acquisitions and the so-called "debasement trade," where investors shifted from currencies and bonds to physical assets in light of increasing fiscal concerns. Global uncertainty, coupled with apprehensions regarding the Federal Reserve's independence, further bolstered gold's status as a refuge for investors seeking a safe-haven asset.