Gold Price Prediction: XAU/USD Holds Above $3,300 on Geopolitical and Inflation Risk

Gold Price Prediction: XAU/USD Sustains Gains Above $3,300 on Tensions and Volatility

H1: Gold Rises to $3,310 as Market Seeks Safety Amid Rising Uncertainty

The Gold price (XAU/USD) climbed to around $3,310 in the early Asian session on Monday, supported by renewed safe-haven demand driven by geopolitical risks and economic volatility. The ongoing standoff between the United States and China, combined with signs of easing inflation, continues to provide short-term upside for the precious metal.

H2: Geopolitical Tensions Boost Gold’s Safe-Haven Appeal

The market reacted strongly to comments made by US President Donald Trump on Friday, accusing China of violating their trade agreement. This fueled risk-off sentiment, leading investors to turn to gold as a protective asset.

H2: Inflation Data Eases, Gold Benefits from Lower Yield Expectations

Gold also found support from the latest US Personal Consumption Expenditures (PCE) inflation data, which showed a YoY rise of just 2.1% in April, below expectations. The soft inflation reading has reduced pressure on the Federal Reserve to raise interest rates, making non-yielding assets like gold more attractive.

Track inflation trends in our US Economy section.

H2: Tariff Uncertainty and PMI Data in Focus

Market participants are also cautious ahead of the release of the US ISM Manufacturing PMI for May, due later Monday. Weak economic data could add to demand for gold, while any improvement may limit its gains.

Meanwhile, US Treasury Secretary Scott Bessent indicated that Trump and Chinese President Xi Jinping may soon speak to resolve trade disputes, including one over strategic minerals. Any positive signals from that dialogue could cap further gains in gold.