Gold is now seen shrinking around $2,385 on Monday during the early trading hours of the Asian session. Hawkish remarks by Federal Reserve (Fed) officials have limited gains in the metal.
However, rising tensions in the Middle East may boost safe-haven assets such as gold.
Meanwhile, the price of gold is now at $2,365.76 which is down by 1.09% since it opened at the beginning of the trading session this morning.
The probability that the Fed will keep interest rates unchanged this year is increasing. New York Fed President John Williams said last week that a rate hike was not the bottom line but that the Fed would need to look at some important economic data to determine its next move.
Chicago Fed President Austan Goolsbee said that rising inflation has begun to moderate and the Fed's current restrictive policy is now on track.
Atlanta Fed President Raphael Bostic emphasized that the Fed will not cut rates until the end of the year. The hawkish fundamental sentiment can reduce the attractiveness of the metal and depress its price.
Looking at the conflict in the Middle East, geopolitical tensions between Iran and Israel have been on the rise in recent weeks.
Israel's attack on the Iranian consulate in Syria in early April and the counterattack against Israel on April 13 seem to have warmed the current war situation.
Both began to ease after US lawmakers approved military aid for Israel last Saturday.
For now, investors will monitor developments surrounding the conflict in the Middle East. Rising tensions in the region could boost the price of gold and some traditional safe-haven assets.
