Gold Price Hits Over One-Week High as USD Weakens and Geopolitical Risks Rise

Gold Price Rises Above $3,350 Amid USD Selling and Market Uncertainty

Gold Price Continues Intraday Rally Driven by USD Weakness and Safe-Haven Demand

Gold price (XAU/USD) surged to approximately $3,359 during Monday’s early European session, marking a peak not seen in over a week. The rally is fueled primarily by a weaker US Dollar amid growing concerns over the US fiscal deficit and speculation that the Federal Reserve may cut interest rates again in 2025.

Fiscal Concerns and Fed Rate Speculations Weigh on the US Dollar

The US budget deficit worries alongside dovish expectations from the Federal Reserve have pressured the US Dollar toward monthly lows. This decline in the USD provides strong tailwinds for gold, traditionally viewed as a hedge against currency weakness and economic uncertainty.

Trade Uncertainty and Geopolitical Risks Boost Safe-Haven Demand

In addition to USD weakness, persistent trade tensions and escalating geopolitical risks have dampened investor risk appetite. This environment supports flows into safe-haven assets like gold. Technical buying above the $3,325 level also underpins the current bullish momentum.

Market Awaits US ISM Manufacturing PMI for Next Direction

Traders now look forward to the US ISM Manufacturing PMI release for further cues on gold’s trajectory, as economic data could impact both the US Dollar and risk sentiment globally.

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