Ella 
Gold prices (XAU/USD) have come up against fresh supply on the first day of a new week and pared some of Friday’s positive moves following a hawkish surprise from the Federal Reserve (FED). In fact, policymakers cut the number of rate cuts expected this year to just one, from the three they had expected in March. This has still been supportive of rising US Treasury yields, allowing the US dollar (USD) to gain footing near its highest level since early May hit on Friday, and is seen as a key factor driving outflows from non-interest bearing gold.
Nevertheless, the likelihood of two rate cuts from the Fed in 2024 remains, amid signs of easing inflationary pressures in the US. This, in turn, has curbed aggressive bets on USD bulls, providing some support to gold prices. Apart from this, ongoing geopolitical tensions in the Middle East and political uncertainty in Europe should help limit losses in the safe-haven metal. Therefore, it would be prudent to wait for some follow-through selling before positioning XAU/USD for a recovery from the all-time peak hit in May.
