Gold Cautious as Fed Rate Hike Bets Keep Markets on Edge
Gold prices remain under pressure as markets prepare for major US economic events this week.
The US Federal Reserve's interest rate hike expectations continue to weigh on sentiment, but a weaker US Dollar helps limit additional losses.
A softer US Dollar has provided underlying support for gold and prevented a deeper decline, although higher interest rate expectations still reduce the appeal of non-yielding assets like gold.
Geopolitical developments also influence gold prices, with market sentiment improving after US President Donald Trump announced peace talks with Iran.
The next short-term move in both the US Dollar and gold will likely be determined by key economic data releases, including the US ISM Manufacturing PMI and the US Nonfarm Payrolls report later this week.