Gold prices edged higher on Monday, driven by expectations of a Federal Reserve rate cut in December, alongside geopolitical tensions and trade concerns that supported safe-haven demand. However, gains remained capped near the $2,650-2,655 resistance zone, as hopes for US President-elect Donald Trump’s expansionary policies fueling inflation buoyed the US Dollar, adding pressure on the non-yielding metal. Despite this, downside risks for gold were limited by depressed Treasury yields and ongoing global uncertainties, including political instability in South Korea and trade war fears.
Recent US economic data, including a stronger-than-expected Nonfarm Payrolls report and improved consumer sentiment, reinforced the likelihood of a modest rate cut by the Fed this month. Meanwhile, Federal Reserve officials maintained a cautious stance, suggesting the possibility of further rate adjustments if inflation accelerates unexpectedly. Technically, gold’s upside faces resistance near $2,666 and $2,672, with a potential target at $2,700 if momentum builds. On the downside, immediate support lies at $2,630, with deeper declines possible toward $2,586 if key levels break. Overall, gold prices remain constrained, awaiting further clarity from upcoming US inflation data.
