Gold prices eased slightly in early Monday trading, with spot gold (XAU/USD) dipping to $3,415.00 after hitting an intraday high of $3,452—its strongest level since April 22. The precious metal remains elevated amid escalating geopolitical tensions and rising market expectations that the Federal Reserve may shift toward a more accommodative monetary policy in the coming months.
Despite a strong start to the Asian session, intraday selling pressure emerged as investors adopted a cautious stance ahead of the Fed’s upcoming policy decision on Wednesday. U.S. gold futures slipped 0.1% to $3,448.10, while spot gold remained firmly above the critical $3,400 support level.
“The break above $3,400 marks a clear shift in sentiment,” said Kelvin Wong, senior market analyst at OANDA. “But the market is pausing here, waiting for signals from the Fed. If we break above $3,500, it opens room for a more extended move.”
Tensions in the Middle East continue to support safe-haven demand for gold. However, resilient equity markets across Asia have limited further upside. Meanwhile, a modest recovery in the U.S. Dollar Index is capping gains for non-yielding assets like gold.
Silver Hovers Near Key Resistance at $36.52
Silver (XAG/USD) is trading at $36.29, just below its session high of $36.39, buoyed by similar safe-haven flows and dovish Fed expectations.
However, mild strength in the U.S. dollar and a risk-on sentiment in equities have constrained bullish momentum. Technical resistance at $36.52 remains a key level that bulls must overcome to sustain the uptrend.
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