Gold Prices Hover Near Two-Week Lows

Gold held steady around $2,340 per ounce (XAU/USD) on Monday, staying close to two-week lows. This stability comes amid doubts that the Federal Reserve will significantly cut rates this year.

Gold Prices Hover Near Two-Week Lows

Gold Prices Hover Near Two-Week Lows

Last week’s economic reports revealed a surge in US business activity and a robust labor market. This news has led investors to reconsider the likelihood of multiple rate cuts by the Fed in 2023.

According to CME’s FedWatch Tool, market bets now show a 62% chance of a single rate cut by November. This reflects growing skepticism about the Fed’s willingness to ease monetary policy further.

Focus on Upcoming Inflation Data

This week, all eyes will be on the US PCE inflation data, the Fed’s preferred measure of inflation. The May meeting minutes highlighted concerns about persistent inflation, with some officials considering rate hikes if price growth doesn’t slow down.

Geopolitical Tensions Impact Markets

Over the weekend, geopolitical tensions rose as reports indicated over 30 fatalities in an Israeli strike on a camp in Rafah. Such events can influence market movements, adding another layer of complexity for investors.