Geopolitical fears also weigh on XAU/USD

Apart from Gold the traders’ indecision, and geopolitical fears surrounding China, Russia and North Korea also weigh on the XAU/USD price. That said, the Sino-American tussles appear grim of late while US President Joe Biden’s concerns about Russia’s shifting of nuclear weapons to Belarus and North Korean Leader Kim Jong Un’s lauding of readiness to use nuclear powers raise the market’s fears of deadly war in case if theses catalysts move forward. The same could join the month-end positioning and a light calendar to challenge the Gold buyers.

Market’s anxiety restricts Gold price moves

Although multiple hurdles keep challenging the Gold buyers, apart from the US Dollar weakness, the lack of data and cautious mood ahead of this week’s top-tier inflation data from Germany, Europe and the US prod the XAU/USD traders. Adding strength to the market’s indecision could be the recent jump in the US inflation expectations, as per the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED). That said the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) recently flashed a three-day and two-day winning streak respectively while posting the 2.31% and 2.34% level in that order. With this, the inflation precursors rose to the highest levels in a fortnight.

To sum up, the Gold price remains indecisive despite the latest rebound and hence traders should wait for clear directions before taking any major positions.