Gold price regains positive traction in reaction to Iran’s attack on Israel over the weekend.
The upside remains capped amid hawkish Federal Reserve expectations and a bullish USD.
The US Retail Sales and Empire State Manufacturing Index are eyed for short-term impetus.
Gold price (XAU/USD) attracts some dip-buying on the first day of a new week and stalls its retracement slide from a fresh all-time peak, around the $2,431-2,432 area touched on Friday. Iran's attack on Israel over the weekend fueled concerns about a further escalation of conflicts in the Middle East, which, in turn, benefits the traditional safe-haven precious metal. Apart from this, subdued US Dollar (USD) price action is seen as another factor lending some support to the commodity.
The downside for the USD, meanwhile, remains cushioned in the wake of expectations that the Federal Reserve (Fed) may delay cutting interest rates in the wake of still-sticky inflation in the US. The hawkish outlook keeps the US Treasury bond yields elevated, which should continue to act as a tailwind for the buck and cap any further gains for the non-yielding Gold price. Traders now look to the US macro data and Fedspeak for some impetus later during the North American session.
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