Gold price reverse a slight intraday drop on Monday.

On Monday, the gold price (XAUUSD) saw some dip-buying near $2,424 and looks to build on last week’s goodish comeback from the 50-day Simple Moving Average (SMA) support.

Geopolitical risks and Fed rate drop bets provide support, but a positive risk tone could limit the upside.

Investors still apprehensive about the risk of a broader conflict in the Middle East. Which considered as a crucial factor acting as a tailwind for the Precious metal. Aside from that, prospects of more interest rate cuts by the Federal Reserve (Fed) provide extra support to the non-yielding commodity.
The intraday increase, however, lacks bullish conviction in the face of a generally upbeat tone in the equities markets, which tends to erode the safe-haven gold price. Furthermore, a minor increase in the US Dollar (USD) helps to curb gains for the XAUUSD. Traders also appear hesitant and prefer to remain on the sidelines ahead of the important US inflation statistics, the Producer Price Index (PPI) and the Consumer Price Index (CPI) on Tuesday and Wednesday, respectively.

Daily Market Movers: Gold prices gain from geopolitical worries and Fed rate cut bets.

The Israel Defense Forces (IDF) intercepted some 30 missiles. That were Early Monday morning, a border crossing from Lebanon into northern Israel identified.
The Israeli Air Force and Military Intelligence Directorate have been placed on high alert following indications in Western Iran that point to an impending attack.
Hamas officials have asked mediators in the cease-fire discussions with Israel to offer a plan based on prior conversations rather than engaging in fresh ones.
In response to growing regional tensions, the United States is boosting its Middle Eastern capabilities by sending an extra guided missile submarine to the region.
The developments enhance the likelihood of a bigger confrontation in the region, lending some support to the safe haven. The gold price has risen in response to dovish Federal Reserve predictions.
Market players have fully priced in a 25-basis-point Fed rate decrease move. the September policy meeting and expect an equal possibility of a larger 50-bps rate drop.
Fed Governor Michelle Bowman warned on Sunday that the central bank may not be ready to drop interest rates in September due to rising inflation risks and ongoing labor market strength.
This, however, does not help the US Dollar attract major buyers or provide any encouragement for the non-yielding yellow metal at the start of a new trading week.

Traders prefer to remain on the sidelines ahead of this week’s release of critical US inflation data.

Bullish traders, on the other hand, prefer to remain on the sidelines and eagerly await the release of the most recent US inflation numbers this week before positioning for further increases.
The US Producer Price Index (PPI) and the US Consumer Price Index (CPI) are scheduled for Tuesday and Wednesday, respectively, followed Retail sales in the United States were reported on Thursday.
This could influence the Fed’s future policy decisions, which, together with geopolitical developments, should provide a fresh impetus to the XAU/USD.