Gold price (XAU/USD) continues to attract buyers for the third consecutive day on Monday, reaching a one-week high around the $2,439-$2,440 area during the early European session. The ongoing conflicts in the Middle East have been a significant driver of this upward momentum, as investors seek safe-haven assets amid persistent geopolitical risks. Additionally, growing speculation about larger interest rate cuts by the Federal Reserve (Fed) further supports the non-yielding precious metal.
Despite these positive factors, a broadly positive risk tone might prevent traders from making aggressive bullish bets on gold. Moreover, many investors are likely to remain cautious ahead of key US inflation data releases this week, including the Producer Price Index (PPI) on Tuesday and the Consumer Price Index (CPI) on Wednesday. These figures are expected to provide clearer insights into the Fed’s future monetary policy actions.
Given these dynamics, it may be prudent for traders to wait for further confirmation of sustained buying before positioning for a more extended rally in gold prices. Specifically, they might look for continued support around the 50-day Simple Moving Average (SMA) as a key indicator of ongoing bullish momentum.
