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Gold prices (XAU/USD) showed a slight rebound from $4,480, their lowest level since March 30, during the Asian session on Monday. However, the upside remains constrained due to a strong US Dollar (USD) and sustained geopolitical tensions. The USD's resilience is driven by persistent uncertainty in global markets, which has kept investors seeking safe-haven assets like the dollar rather than gold. Analysts note that the Federal Reserve's potential rate hikes, expected later this year, could further weigh on gold's recovery. For traders, the USD's strength and central bank policy signals are critical factors to monitor, as they directly impact gold's price trajectory. Market participants should watch upcoming Fed statements and inflation data for clues on monetary policy direction. The interplay between USD demand and gold's safe-haven appeal will likely dictate short-term price action.
