Gold price (XAU/USD) continues with its struggle to gain any meaningful traction and remains confined in a multi-day-old trading range through the first half of the European session on Monday. Investors remain worried that US President Donald Trump’s trade tariffs would trigger a global trade war, which, in turn, continues to act as a tailwind for the safe-haven bullion. Furthermore, worries that Trump’s protectionist policies would boost inflation further benefit the commodity’s status as a hedge against rising prices.
Meanwhile, worries about the US consumer health and economic growth outlook drag the US Dollar (USD) to its lowest level since December 10. This, along with geopolitical tensions, turn out to be other factors underpinning the Gold price. However, the growing acceptance that the Federal Reserve (Fed) will keep interest rates higher for longer amid sticky inflation caps the upside for the non-yielding yellow metal. Traders also opt to wait for the release of the US Personal Consumption Expenditures (PCE) Price Index on Friday.
