The yield on the benchmark 10-year US government bond remains depressed near 4.275%, undermining the US Dollar and lending some support to the Gold price.
A recession in Japan and the UK, along with continued geopolitical tensions stemming from conflicts in the Middle East, further benefit the safe-haven precious metal.
US President Joe Biden said on Monday that he hopes to have a ceasefire in the Israel-Hamas war and a pause-for-hostages deal by Ramadan's beginning on March 10.
The FOMC meeting minutes released last week and comments by several Federal Reserve officials suggested that the US central bank was in no rush to cut interest rates.
Kansas City Fed President Jeffrey Schmid said that the US central bank should be patient and wait for convincing evidence that the fight against inflation has been won.
Markets have all but priced out the possibility of a rate cut in March and see around a 60% chance of the first 25 basis points rate cut coming at the June FOMC meeting.
Traders now look to the US macro data due on Tuesday – Durable Goods Orders, the Conference Board's Consumer Confidence Index and the Richmond Manufacturing Index.
Investors this week will also confront the release of the Prelim US Q4 GDP print on Wednesday and the Personal Consumption Expenditures (PCE) Price Index on Thursday.
The latter is considered the Fed's preferred inflation gauge, which, in turn, will influence expectations about future rate cuts and provide fresh impetus to the XAU/USD.
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