Article Detail

The release of upbeat US jobs data on Friday, coupled with recent hawkish remarks from Federal Reserve officials, prompted investors to scale back their expectations for the number of rate cuts in 2024. This led to a limit on gains for the price of gold.

Chicago Fed President Austan Goolsbee acknowledged on Monday that the US economy remains robust. However, he emphasized the need for the central bank to carefully consider how long to maintain restrictive monetary policies without causing harm to the economy.

The high yields of US Treasury bonds provide support for the US Dollar and contribute to restricting gains for gold, which does not yield interest. Additionally, geopolitical tensions may offer some support to gold prices.

Israeli Prime Minister Benjamin Netanyahu announced plans for a ground offensive in the southern Gaza city of Rafah, dampening hopes for a potential ceasefire and dampening recent optimism.

Investors are now turning their attention to the US Consumer Price Index (CPI) and the minutes from the Federal Open Market Committee (FOMC) meeting on Wednesday. These events are expected to provide insights into the Fed's path for rate cuts, which could influence the direction of the XAU/USD (gold price in US dollars).