Gold prices rebounded during the Asian session on Monday, supported by mild U.S. Dollar weakness amid expectations of further Federal Reserve rate cuts in 2025 and easing inflationary pressures in the U.S. The XAU/USD climbed back above $2,700, buoyed by uncertainties surrounding U.S. President-elect Donald Trump’s tariff policies and geopolitical developments, such as a ceasefire in the Israel-Hamas conflict and potential diplomatic moves regarding Russia and Ukraine. However, optimism around Trump’s potential inflation-boosting policies and the Federal Reserve’s likely pause in its rate-cutting cycle could limit gold’s upside. Traders remain cautious, awaiting Trump’s inaugural speech for clarity on his economic agenda and policy direction, especially as markets observe Martin Luther King Jr. Day.


