Gold prices rally over 1.80%, boosted by geopolitical developments and a dip in the US Dollar Index to 106.27.
Recent US support for Ukraine escalates tensions, influencing safe-haven assets and impacting the Greenback.
Traders adjust Fed rate cut expectations, with a decrease in the likelihood of a December adjustment from 82% to 62%.
Gold price rallied over 1.80% at the beginning of the week and climbed above $2,600 after falling to a two-month low of $2,536. An escalation of the Russia-Ukraine conflict, along with a weak US Dollar, opened the door for Gold’s leg up on Monday. At the time of writing, XAU/USD trades at $2,610.
Wall Street sentiment is mixed. Two of the four largest US equity indices trade with gains, while the other two fluctuate. Geopolitics continued to drive the bullion’s price action after Russia’s massive attack on Ukraine triggered a reaction by the White House.
Recently, two officials revealed that US President Joe Biden authorized Ukraine's use of long-range missiles inside Russia, CNN revealed. The decision comes as a reaction to thousands of North Korean troops being deployed in support of Moscow’s war effort.
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