Gold price (XAU/USD) climbs to a one-week high, beyond the $3,350 level during the early European session on Monday and seems poised to climb further amid a combination of supporting factors.
The Personal Consumption Expenditures (PCE) Price Index released on Friday further pointed to signs easing inflationary pressures in the US and bolstered the case for more rate cuts by the Federal Reserve (Fed). This, in turn, prompts fresh US Dollar (USD) selling and acts as a tailwind for the non-yielding yellow metal.
Meanwhile, concerns about the worsening US fiscal situation, geopolitical risks stemming from the protracted Russia-Ukraine war and conflicts in the Middle East, and renewed US-China trade tensions temper investors' appetite for riskier assets.
This is evident from a generally weaker tone around the equity markets and turns out to be another factor that benefits the safe-haven Gold price. Moreover, a move beyond the $3,325-3,326 hurdle favors the XAU/USD bulls and supports prospects for further gains.
Source: FXStreet
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