- Gold price trades on a softer note near $2,385 on Monday.
- The hawkish shift in market sentiment could dampen demand for yellow metal.
- The rising conflict between Israel and Iran might lift the gold price.
Market Sentiment and Gold Price
Gold Price (XAU/USD) attracts some sellers around $2,385 on Monday during the early Asian trading hours. The hawkish comments by Federal Reserve (Fed) officials have capped the precious metal’s upside. The probability that the US Fed will keep interest rates unchanged this year is rising, leading to a decrease in demand for non-yielding assets like gold. This shift in market sentiment is likely to weigh on the gold price in the short term.
Geopolitical Tensions and Gold Price
Geopolitical tensions between Israel and Iran have intensified in recent weeks, with a suspected Israeli attack on an Iranian consulate in Syria and Iran’s retaliatory attack on Israel. While the situation seems to have de-escalated for now, investors remain cautious about the potential for further conflict in the region. The rising tension in the Middle East could act as a catalyst for the gold price as investors seek safe-haven assets to hedge against geopolitical risks.
Overall, the interplay between market sentiment and geopolitical events will likely continue to influence the movement of the gold price in the near term, with investors closely monitoring developments in both areas for potential impact on the precious metal.
