Gold price attracts buyers for a second day in a row due to a combination of supportive factors.

The gold price (XAUUSD) struggles to capitalize on the Asian session advance to levels above $2,400. But manages to remain positive for the second straight day on Monday. The US Personal Consumption Expenditures (PCE) Price Index data issued on Friday revealed. That inflation climbed moderately in June, increasing bets for an imminent start of The Federal Reserve (Fed) is currently reducing interest rates. This causes US Treasury bond yields to fall even more. Keeping USD bulls on the defensive and acting as a tailwind for the non-yielding yellow metal.

The USD remained down amid September Fed rate drop speculations, acting as a tailwind for the XAUUSD.

Aside from that, geopolitical issues resulting from Middle Eastern wars provide additional support for the safe haven gold price. The gain, however, remains limited in light of the positive attitude in global equities markets. Which tends to erode demand for the traditional safe-haven XAUUSD. Traders also prefer to await the outcome of the Federal Open Market Committee’s (FOMC) two-day meeting on Wednesday. This, along with major US macro data anticipated at the start of a new month, such as the Nonfarm Payrolls (NFP) report , will give the commodity new life.

Daily Market Movers: Gold price traders are uncommitted despite mixed fundamental cues.

On Friday, modest US inflation statistics reiterated market views. That the Federal Reserve (Fed) will cut interest rates in September, driving flows into the non-yielding gold price higher.
The US Commerce Department’s Bureau of Economic Analysis stated. That the Personal Consumption Expenditures (PCE) Price Index rose 0.1% last month after remaining constant in May.
Over the previous 12 months through June, the PCE Price Index fell marginally from 2.6% the previous month to 2.5%, confirming consensus estimates and adding to signals of declining inflation.
The core PCE Price Index remove volatile food and energy prices It is the Fed’s favored inflation index, showed a 0.2% monthly increase in June, but the annual rate remained unchanged at 2.6%.
The better inflation outlook dropped the benchmark 10-year note yields to an almost two-week low on Monday, undermining the US dollar and benefiting the XAUUSD.

Golan Heights strike on Saturday has heightened fears of an all-out conflict between Israeli forces and Hezbollah in Lebanon.

The Golan Heights strike on Saturday has heightened fears of an all-out conflict. Between Israeli forces and Hezbollah in Lebanon, driving up demand for the safe-haven precious metal.
A robust surge in global share markets may limit the commodity’s potential runaway rally before of the critical two-day FOMC monetary policy meeting, which begins on Tuesday.
This week, investors will take more clues from the Bank of Japan’s decision on Wednesday will be followed by the Bank of England meeting on Thursday and key US macroeconomic announcements.