Safe Haven Interest Boosts Gold, But Gains Remain Limited
Gold prices (XAU/USD) moved positively for the second consecutive day on Monday (July 21st), but remained stuck within a narrow range that has persisted for several weeks. Investor concerns about the economic impact of higher US import tariffs have maintained interest in gold as a safe haven asset.
Meanwhile, the US dollar remained stable below its highest level since late June as the market awaited clarity on the Federal Reserve's interest rate direction. Expectations that the Fed might delay interest rate cuts, as well as inflationary pressures from tariff policies, have kept gold—which offers no yield—limited in its movements.
With no significant US economic data released today, investors are expected to focus on news surrounding trade and monetary policy. Market participants are likely waiting for a strong signal or clearer buying momentum before pushing gold prices out of their consolidation range.
Source: (ayu-newsmaker)