Gold price stalls the post-NFP retracement slide from the vicinity of the all-time peak.
Reduced bets for a larger rate cut by the Fed underpin the USD and act as a headwind.
Worries about the US economic slowdown and geopolitical risks continue to offer support.
Gold price (XAU/USD) witnessed an intraday turnaround from the vicinity of the all-time peak and dropped back below the $2,500 psychological mark following the release of the key US monthly employment details on Friday. The mixed US jobs report reduced the likelihood of a larger 50 basis point rate cut by the Federal Reserve (Fed), which, in turn, prompted some US Dollar (USD) short-covering and exerted some pressure on the precious metal.
That said, worries about a US economic downturn temper investors' appetite for riskier assets and act as a tailwind for the safe-haven Gold price. Apart from this, the lack of progress in ceasefire negotiations between Israel and Hamas turned out to be another factor lending support to the XAU/USD during the Asian session on Monday. This warrants caution for bearish traders amid the prospects for an imminent start of the Fed's rate-cutting cycle.
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