Gold prices (XAU/USD) remain defensive but steady during early European trading on Monday, hovering just below last week’s all-time high. While the precious metal sees limited follow-through selling, it benefits from investor optimism driven by China’s recent stimulus measures, which continue to boost appetite for riskier assets.
At the same time, escalating geopolitical tensions in the Middle East, particularly the ongoing conflict, provide a safety net for gold, helping to prevent significant price declines.
Expectations of further easing by the US Federal Reserve (Fed) also play a crucial role in supporting gold prices. Market sentiment suggests the Fed may reduce interest rates by 50 basis points at its November policy meeting, a move that would benefit the non-yielding asset.
Meanwhile, the US Dollar (USD) remains in a consolidative pattern, trading above its lowest levels since July 2023, reached on Friday. The sideways movement in the dollar indicates that the gold price could face upward momentum. Traders now await Fed Chair Jerome Powell’s upcoming speech, which could offer new insights into the central bank’s future monetary policy.
You Might Be Interested In
- Gold Futures Hit Record Highs Amid Evolving Economic Landscape
- Gold Market Pauses After Record Rally Amid Correction Concerns
- Silver Surpasses Gold as Top Precious Metal Amid Strong Demand
