Gold stays supported amid cautious Fed outlook and geopolitical risks
Gold (XAU/USD) kicks off the week on a firm footing, extending its advance for a fifth consecutive day as uncertainty over the Federal Reserve’s (Fed) monetary policy outlook keeps traders defensive. At the time of writing, XAU/USD is trading around $4,330, as buyers struggle to clear the $4,350 mark.
From a broader macro perspective, the metal remains supported by persistent geopolitical tensions. At the same time, continued strong central bank demand and robust inflows into Gold-backed exchange-traded funds (ETFs) are providing a steady tailwind for prices.
Investors are also positioning for a busy US economic calendar in the days ahead, with upcoming data likely to shape expectations around the Fed's policy path into 2026. The spotlight this week falls on the delayed October and November Nonfarm Payrolls (NFP) report, due to be released on Tuesday, followed by the Consumer Price Index (CPI) on Thursday.
Geopolitical tensions remain elevated amid stalled US-led peace talks between Russia and Ukraine. Reuters reported that Ukrainian President Volodymyr Zelenskiy offered to drop Ukraine’s bid to join the NATO military alliance in exchange for Western security guarantees, as part of efforts to end the war with Russia. The proposal would meet one of Moscow’s key war aims, although Kyiv has so far held firm against ceding territory to Russia.
Source: FXstreet.com
