Gold prices (XAU/USD) dipped slightly to $2,435 during the early Asian trading session on Monday. Despite this decline, expectations of potential rate cuts by the US Federal Reserve and a risk-off sentiment driven by Middle Eastern geopolitical tensions may limit further downside movement.
Conversely, escalating geopolitical tensions in the Middle East may enhance safe-haven demand for gold. The BBC reported that several countries have advised their citizens to leave Lebanon amid increasing fears of a broader conflict in the region. This follows news of the US general responsible for American troops in the Middle East arriving on Saturday, as preparations reportedly continue for a potential Iranian strike against Israel in response to the deaths of senior Hamas and Hezbollah leaders.
In summary, while gold prices are currently under pressure, the interplay of anticipated Federal Reserve rate cuts and geopolitical uncertainties could provide support for the precious metal in the near term. Investors will be closely monitoring upcoming economic indicators and geopolitical developments for further direction.
