Gold prices, represented by XAU/USD, relinquished earlier gains to trade in the $2,410s on Monday following remarks from Federal Reserve (Fed) Vice Chair for Supervision Michael Barr. Barr’s comments hinted at the necessity of maintaining current interest rates for an extended period to effectively address inflation concerns.
During a speech on Monday, Barr emphasized the importance of allowing tight monetary policy more time to achieve its objectives. The US dollar saw a modest uptick of 0.1% in response to Barr’s remarks, causing fluctuations in the price of gold, which edged lower.
Earlier in the day, gold had surged to a new all-time high, buoyed by its status as a safe-haven asset amidst escalating geopolitical tensions. The heightened geopolitical risk was underscored by reports of the tragic helicopter crash in northern Iran, resulting in the loss of President Ebrahim Raisi and other prominent political figures. This event intensified uncertainty in a region already fraught with tensions stemming from the Israel-Hamas conflict.
