Gold (XAU/USD) traded slightly higher on Monday (November 24th) as investors considered developments in the Federal Reserve's monetary policy outlook alongside improving sentiment on risk assets. At the time of writing, XAU/USD was trading around $4,087, up nearly 0.50% after bouncing off an intraday low near $4,040.

Market sentiment remains anchored by renewed expectations for a December interest rate cut after New York Fed President John Williams said on Friday that he still sees room for near-term easing. His remarks helped revive rate cut expectations after a period of waning confidence.

However, uncertainty remains as several other policymakers maintain a more cautious stance. At the same time, a lack of data ahead of the Federal Open Market Committee (FOMC) meeting on December 9-10th clouds the outlook, given that key inflation and employment reports are not due until mid-December.

Rising risk appetite could limit gains in non-yielding precious metals. As traders increase the likelihood of a December interest rate cut, global equities have stabilized after a volatile week, reducing demand for safe-haven assets.

Nevertheless, the downside remains supported, with geopolitical risks still playing a role. The ongoing US-brokered Russia-Ukraine peace efforts remain fragile, and any setback could quickly revive safe-haven flows and keep buyers interested during price declines. (alg)

Source: FXstreet