Gold Price Outlook: XAU/USD Slips to Around $2,765 Amid Renewed US Dollar Strength

Gold Price Forecast: XAU/USD Dips to $2,765 Amid Strengthening US Dollar

Gold prices (XAU/USD) slipped to approximately $2,765 during the early Asian session on Monday, as renewed demand for the US Dollar (USD) applied downward pressure. Despite this decline, the downside for the precious metal may remain limited due to market caution and lingering uncertainty over tariff measures announced by US President Donald Trump.

The US Dollar gained momentum as Trump escalated trade tensions by imposing sweeping tariffs and sanctions on Colombia. This move followed Colombia’s refusal to allow two US military planes carrying deported migrants to land. On Sunday, Trump announced an emergency 25% tariff on all Colombian goods entering the US, with plans to increase it to 50% within a week. These developments weighed on the price of gold, a USD-denominated commodity.

Gold traders are now focusing on the upcoming US Federal Reserve (Fed) meeting scheduled for Wednesday, where the central bank is expected to keep interest rates steady. The FOMC press conference will be a key event, as it may provide clues about the Fed’s future monetary policy stance. Last week, at the World Economic Forum, Trump called for an immediate interest rate cut, causing the US Dollar to hit a monthly low and offering support to gold prices. However, any hawkish signals from Fed officials this week could increase pressure on the non-yielding yellow metal.

Key Points for Gold Traders:

• Renewed US Dollar strength weighs on gold prices.
• Trump’s trade measures against Colombia create market uncertainty.
• Fed’s rate decision and FOMC guidance will be closely monitored.

Stay tuned for updates as the market navigates these critical developments.