Gold (XAU/USD) prices extended its intraday uptick near the $2,900 mark during the early European session on Monday, albeit remained confined in a range below its all-time tops touched last week. The US Dollar (USD) languished near its lowest level since December 17 touched in reaction to Friday’s dismal US Retail Sales data. This, along with concerns that US President Donald Trump’s tariffs could trigger a global trade war, turned out to be key factors supporting the safe-haven bullion.
Meanwhile, growing market acceptance that the Federal Reserve (Fed) will stick to its hawkish stance and keep interest rates on hold for an extended period helped limit the USD downside. Additionally, optimism over talks between the US and Russia aimed at ending the war in Ukraine, along with a generally positive risk tone, kept a lid on Gold prices. However, the near-term bias remains tilted in favour of bulls and supports prospects for a further appreciating move for the XAU/USD pair.