Gold steady, geopolitical risks and Fed decision loom

Gold prices remained relatively stable on Monday after hitting a new record high.

While the market could see some corrections after last week’s rise in prices, geopolitical and economic uncertainties could continue to provide support.

In this regard, rising tensions in the Middle East could sustain demand for gold.

However, hopes of positive developments in Eastern Europe could weigh on the gold market. While diplomatic progress could boost investor confidence and potentially limit gold’s gains, any setback could enhance its upside potential.

Additionally, this week’s Federal Reserve interest rate decision could also play a pivotal role in gold prices. While it is widely expected that interest rates would remain unchanged, Chair Jerome Powell’s remarks could provide hints on the Fed’s next move. A dovish stance could benefit non-yielding assets like gold, whereas a more conservative outlook could boost U.S. Treasury yields, pressuring the precious metal.