Gold prices (XAU/USD) attracted some buyers during the early session on Monday, halting a three-day corrective decline from last week’s all-time highs. This stabilization comes against a backdrop of dovish expectations from the Federal Reserve (Fed) and the recent announcement of US President Joe Biden’s withdrawal from the presidential race. The latter has led some investors to unwind positions favoring a Trump victory, putting pressure on the US Dollar (USD) and providing support to gold.
In addition to domestic political uncertainties, concerns about slowing economic growth in China, ongoing geopolitical tensions from the Russia-Ukraine conflict, and persistent unrest in the Middle East are bolstering gold’s appeal as a safe-haven asset.
Despite these supportive factors, gold prices have struggled to gain momentum as traders await Friday’s release of the US Personal Consumption Expenditures (PCE) Price Index. The PCE data will offer crucial insights into the Fed’s potential policy direction, which could influence the near-term trajectory of the non-yielding yellow metal.
