Gold prices (XAU/USD) gain momentum on
Monday. A weaker US Dollar (USD) and increasing geopolitical tensions in the
Middle East support the precious metal.
In the long term, rising demand from
central banks may further strengthen gold.
However, reduced expectations of a
Federal Reserve (Fed) rate cut this year and a hawkish stance from Fed
officials could put downward pressure on XAU/USD, as higher interest rates make
gold less appealing as a store of value.
On Monday,US banks will be closed for the
Memorial Day holiday. Gold traders will look for guidance from the Fed's
speeches on Tuesday, which will include remarks from Michelle Bowman, Loretta
Mester, and Neel Kashkari.
The initial reading of the US Gross Domestic Product
(GDP) for the first quarter, due on Thursday, will be closely watched.
Dr. Kamaran Qader Yaqub,
Financial Consultant at
Investment Spot company.