During the Asian trading session on Monday, the price of gold (XAU/USD) experienced a decline, attributed to hawkish commentary from the Federal Reserve (Fed). Speculation has arisen that the Fed could postpone its plans to ease monetary policies, bolstering the US Dollar and consequently pressuring USD-denominated gold lower.
Despite this decline, gold remains supported by indications of economic weakness and ongoing geopolitical tensions in the Middle East, suggesting potential near-term support for precious metals.
Market participants will closely monitor speeches by Fed officials Jefferson and Mester scheduled for Monday. Additionally, key economic data releases later in the week—including the US Consumer Price Index (CPI), Producer Price Index (PPI), and Retail Sales—will be pivotal. Stronger-than-anticipated economic data could diminish expectations for a Fed rate cut, potentially exerting downward pressure on XAU/USD prices.
