After a three-day decline, the price of gold (XAU/USD) licks its wounds at $1,925 as market mood recovers early on Tuesday. The official activity numbers from China and the optimistic growth projections from the International Monetary Fund may be the cause (IMF). The Covid headlines give the optimism more vigor. The stress associated with important central bank meetings and a crucial earnings report, however, has recently been a concern for gold buyers.
COVID-19 news stories look towards gold bears The optimistic United States Dallas Fed manufacturing index for January, which hit the highest reading since May 2022, along with a cautious attitude in advance of this week's abundant data and central bank meetings favored the gold bears the day before. The Coronavirus-related restrictions from China and the US, however, seemed to have probed the XAU/USD selling later due to risk-positive reports.