Gold Price Remains Confined in a Familiar Range, Softer USD Lends Some Support

SEATTLE (Scrap Monster): Gold price (XAU/USD) struggles to gain any meaningful traction through the early European session Monday, albeit manages to hold above last week's swing low. Investors have been scaling back their expectations for early and steep interest rate cuts by the Federal Reserve (Fed) amid a still resilient US economy. This remains supportive of elevated US Treasury bond yields, which, along with the underlying bullish tone around the equity markets, continues to act as a headwind for the safe-haven precious metal.

That said, the uncertainty over the Fed's rate-cut path fails to assist the US Dollar (USD) in attracting any meaningful buying and helps limit the downside for the Gold price. Traders also seem reluctant to place aggressive bets and prefer to wait for the US consumer inflation figures, due for release on Tuesday. This, in turn, makes it prudent to wait for a sustained breakout through a broader trading range held since the beginning of this year before traders start positioning for the next leg of a directional move for the XAU/USD. 

 Courtesy: www.fxstreet.com