Gold Rebounds as Short Covering and Bargain Hunting Drive Prices Higher

Gold prices rise as short-term futures traders cover their positions and investors engage in bargain hunting after recent selling pressure. The safe-haven appeal of gold and silver has been weighed down by the absence of major military escalation in the Israel-Hamas conflict. U.S. economic data is expected to pick up this week, with the release of the consumer price index report and a meeting between U.S. President Biden and Chinese leader Xi Jinping. U.S. lawmakers are also rushing to pass a measure to fund the federal government before the Friday deadline. The U.S. dollar weakens, while crude oil prices and the yield on the 10-year Treasury note increase. Technical analysis shows that gold and silver futures prices have hit four-week lows, with bears having the overall near-term advantage. Copper prices also closed near the session high, but bears still hold the near-term technical advantage.