Gold (XAU/USD) moved higher to around $5,330 during early Asian trading on Monday, extending gains after touching $5,420 in the previous session. The metal continues to draw support from strong safe-haven demand as geopolitical tensions intensify. Investors now look ahead to comments from Federal Reserve officials on Tuesday for further direction.
Over the weekend, the United States and Israel carried out strikes targeting Iran’s senior leadership and key nuclear facilities. On Monday, US President Donald Trump stated that military operations would continue until Washington’s objectives are achieved. Growing fears of a broader and prolonged conflict in the Middle East have unsettled global markets, prompting investors to shift toward defensive assets like gold.
Meanwhile, rising oil prices have reignited inflation concerns, prompting markets to scale back expectations of a near-term Federal Reserve rate cut. Higher interest rate expectations can limit gains in non-yielding assets such as gold. For now, most investors anticipate that the US central bank will keep rates steady until at least the summer, despite President Trump’s calls for lower borrowing costs.
Market participants will closely monitor speeches from Federal Reserve officials later in the day, including New York Fed President John Williams, Kansas City Fed President Jeff Schmid, and Minneapolis Fed President Neel Kashkari. Any hawkish signals could strengthen the US Dollar and potentially weigh on gold prices.
