Gold prices started the new week on a bearish note, weakening as a result of a strengthening in the US dollar on the back of better than expected NFP data which released during the previous session. At the time of writing, GOLD is trading at a little above $2,031.

US non-farm payrolls registered an increase by 1.763 million during July, causing gold to lose 2% of its value and retreat lower after touching a record high of over $2,072 on Friday. Gold shares a negative correlation with the US dollar, which made some gains as a result of encouraging economic data, supporting expectations of economic recovery in the US.

The yellow metal has gained around 33% so far this year due to rising uncertainty surrounding the coronavirus pandemic and its impact on the global economy. The safe haven appeal of gold has received additional support as a result of various stimulus efforts being unveiled by governments and central banks worldwide, in a bid to offset damage caused by the pandemic on economies.

Gold prices are also expected to see some movement in the coming days as a result of US-China tensions after US President Donald Trump announced a ban on two popular Chinese mobile apps. However, US-China tensions also cause the US dollar to strengthen, which controls gains in the precious metal.