Gold price extends its consolidative price move near all-time peak
Gold price (XAU/USD) attracts some dip-buying during the Asian session on Monday, though it remains confined in a familiar range near the all-time peak touched last week. The uncertainty surrounding US President Donald Trump's trade tariffs and their impact on the global economy, along with the broader risk-averse theme, continues to act as a tailwind for the safe-haven bullion. Apart from this, geopolitical tensions and the underlying bearish sentiment surrounding the US Dollar (USD) turn out to be other factors that underpin the commodity.
That said, expectations that the Federal Reserve (Fed) will keep interest rates higher for longer amid still-sticky inflation cap the upside for the non-yielding Gold price. Hence, the market focus will remain glued to the release of the US Personal Consumption Expenditures (PCE) Price Index – the Fed's preferred inflation measure – on Friday. The crucial data would be looked upon for more cues about the Fed's rate-cut path, which, in turn, will drive the USD demand and help in determining the next leg of a directional move for the precious metal.
Source: FXstreet
