Gold rebounds from two-week low ahead of Trump-Zelensky meeting
Gold (XAU/USD) rebounds swiftly from over a two-week low, around the $3,324-3,323 area touched during the Asian session on Monday, and touches a fresh daily top in the last hour.
The growing acceptance that the US Federal Reserve (Fed) will resume its rate-cutting cycle in September triggers a fresh leg down in the US Treasury bond yields. This, along with some repositing trade ahead of US President Donald Trump's meeting with Ukrainian President Volodymyr Zelenskiy and European leaders to discuss a peace deal with Russia, offers some support to the safe-haven bullion.
Meanwhile, the US Dollar (USD) ticks higher amid diminishing odds for a more aggressive policy easing by the Fed, which might keep a lid on any meaningful appreciating move for the non-yielding Gold.
Apart from this, the prevalent risk-on mood warrants some caution for the XAU/USD bulls. Traders might also opt to wait for more cues about the Fed's rate-cut path before placing fresh directional bets. Hence, the focus will remain glued to the release of the FOMC Minutes and Fed Chair Jerome Powell's speech at the Jackson Hole Symposium during the latter part of the week.
Source: FXstreet
