Gold price attracts fresh buying following an early slide to the $1,968 area on Monday. It has also climbed to over a one-year top, beyond the $2.000 psychological mark during the early part of the European session.
In fact, the rate-sensitive 2-year US government bond last week recorded its biggest three-day slump since Black Monday in October 1987. This, to a larger extent, helps offset a modest US Dollar (USD) strength, which tends to undermine the US Dollar-denominated Gold price.
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Traders, however, might refrain from placing fresh bullish bets and prefer to move to the sidelines ahead of the key central bank event risk. The Fed is scheduled to announce its policy decision on Wednesday, which will now play a key role in influencing the next leg of a directional move for the XAU/USD.
Meanwhile, the fundamental overview states the Gold price attracts fresh buying following an early slide to the $1,968 area on Monday and climbs to over a one-year top, beyond the $2.000 psychological mark during the early part of the European session.
The strong intraday move-up validates Friday’s breakout through the previous YTD peak, around the $1,958 zone, and supports prospects for an extension of the recent upward trajectory witnessed over the past two weeks or so.
