Gold prices rebounded strongly on Monday, with bargain hunting appearing in the market

Gold prices reversed losses to rise on Monday as bargain hunting emerged as the market focused on trade developments and a slew of economic data. Spot gold rose nearly 1% to $3,349 an ounce in U.S. trading after falling as much as 1.8%. "We are starting to see the first signs of exhaustion in the selling momentum," said Daniel Ghali, commodity strategist at TD Securities, adding that downside risks for gold were extremely limited. "Western investors, especially discretionary traders or macro funds, were completely under-positioned during the last rally in gold prices, so selling activity was limited and the rise in gold prices also reflects that."