Gold acquires significant bullish momentum and reaches a new all-time high.

The gold price (XAUUSD) extends its recent strong advance over the last three weeks or so. Surging to a new record high in the $2,144-2,145 range during the Asian session on Monday.

The precious metal, on the other hand, gave up a large portion of its intraday gains. And is now trading below the $2,100 level, up roughly 0.70% for the day. A slight increase in US Treasury bond yields benefits the US Dollar (USD). In drawing some buyers and forcing bulls to take some profits off the table. Due to overbought circumstances on the daily chart. However, rising predictions that the Federal Reserve (Fed) would stop raising interest rates. And begin easing monetary policy by the first half of 2024 may continue to support the non-yielding yellow metal.

The XAUUSD gains from the cautious market environment as well as dovish Fed predictions.

Meanwhile, escalating Middle Eastern tensions. And fears of another COVID-19-like respiratory sickness outbreak in China dampen investors’ desire for riskier assets. This is clear from the pervasive cautious tone in the equities markets. Which further contributes to the safe-haven Gold price’s limited downside. Traders may also refrain from making new directional bets and instead opt to wait for this. The week’s key US macro data, scheduled at the start of a new month.

Meanwhile, the release of US Factory Orders data on Monday may influence the USD. And provide some momentum to the XAUUSD later in the early North American session. Nonetheless, the fundamental backdrop calls for some caution on the part of strong negative traders.

Daily Digest Market Movers: The gold price may continue to benefit from a weaker risk tone and dovish Fed expectations.

The global risk-on surge came to a halt on Sunday as Iran-backed Houthi rebels in Yemen attacked. An American warship and commercial vessels in the Red Sea.

A US military spokesman acknowledged that five Iraqi terrorists were killed in a “self-defence strike. On an imminent threat” near the northern city of Mosul. on Sunday afternoon in Kirkuk.

The prospect of further escalation of geopolitical tensions in the Middle East. Combined with an increase in occurrences of respiratory ailments in China, drives up the price of safe-haven gold.

This follows growing consensus that the Federal Reserve (Fed) will maintain the status quo in December. And begin decreasing interest rates as early as March 2024.

Fed Chairman Jerome Powell said on Friday that it would be premature to predict when policy will loosen. Denying rumors of more aggressive rate reduction.

Investors, on the other hand, appear persuaded of an impending shift in the Fed’s monetary stance, dragging the benchmark 10-year US Treasury yield to a 12-week low.

Meanwhile, dovish Fed predictions keep the US Dollar bulls on the offensive. anticipation of this week’s critical US economic data, and offer extra support to the XAUUSD.

ISM Services PMI on Tuesday is highlighted in this week’s US economic calendar.

The release of the ISM Services PMI on Tuesday is highlighted in this week’s US economic calendar, followed by the ADP data on private-sector employment on Wednesday and the US key NFP report on Friday.

According to a recent World Gold Council study, 24% of all central banks want to raise their gold reserves in the next 12 months, as they become increasingly negative about the US as a reserve asset.