Gold is extending the rebound from monthly lows above the $5,000 threshold in Asian trades on Wednesday, having booked the biggest daily gain since 2008.

Despite the sharp pullback seen recently, the broader EUR/USD story still looks intact. The pair continues to eye the area around the yearly highs near 1.2100, helped by a loss of momentum in the so-called “Warsh trade”.

Spot Gold managed to recover ground after falling sharply for two days in a row, trading well above the $4,900 mark in the American session on Tuesday. The US Dollar (USD) lost its recent momentum, although losses against other currencies are limited.

AUD/USD remains firmly within its broader upward trend, brushing off two consecutive daily declines as markets continue to digest the Reserve Bank of Australia (RBA)’s hawkish rate decision earlier in the day.

The British pound continues to see a lot of noise, as traders recognize that London is going to be hesitant in cutting rates rapidly, just as the Americans could do.

The US dollar continues to see a lot of noise, as traders have recently tried to push the Federal Reserve into perceived rate cuts coming quickly. This is something the trading community has been wrong about for some side.