Gold price holds firm at around $3,370 on Monday as the Greenback recovers some ground following Federal Reserve (Fed) Chair Jerome Powell's dovish tilt last Friday. A scarce economic docket on Monday, except for New Home Sales, keeps traders focused on labor market data and the Fed's preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index.
The non-yielding metal lacks direction, with traders seeming to be booking profits following Powell's stance. Alongside the data mentioned above, Gross Domestic Product (GDP) figures will also be crucial in suggesting if the Fed should keep rates at the 4.25%-4.50% range or reduce rates based on a slowdown.
Despite this, investors had priced in a 90% chance of a rate cut, as revealed by the Prime Market Terminal interest rate probability tool.
ING analysts, on a note, write, "Traders added to bets the Fed will cut rates next month. With US rate cut bets intensifying after Powell's speech, Gold could be poised for another fresh record high."
In the meantime, US President Donald Trump and Russian President Vladimir Putin talked about denuclearization and Trump added that Putin is reluctant to meet Zelenskiy because he does not like him.
A de-escalation of the Russia–Ukraine conflict would be negative for Bullion prices, which usually fares well amid geopolitical uncertainty.
In the meantime, CNBC reported that furniture tariffs will be imposed as part of a national security investigation into lumber, citing a White House official.
Ahead this week, Gold traders will eye the release of Durable Goods Orders, GDP, Initial Jobless Claims, and the Fed's favorite inflation gauge, the Core Personal Consumption Expenditures (PCE).
Source: Fxstreet
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