What's interesting about the gold price this week?

Gold prices (XAU/USD) struggled to gain any significant traction during the Asian trading session on Monday, pressured by a mix of diverging forces and weakening near the three-week low hit on Friday.

The growing acceptance that the Federal Reserve (Fed) will start cutting interest rates by the end of this year, supported by signs of easing inflationary pressure in the US, has weakened the US Dollar (USD). This, along with persistent geopolitical risks, has been a key factor supporting the safe-haven metal.

However, gold's upside remains limited by generally positive risk sentiment and hopes for a ceasefire in Gaza. Traders also seem hesitant, waiting for key US macroeconomic data to be released early this month, including the Non-Farm Payrolls (NFP) report on Friday. Additionally, major central bank events – the Bank of Canada's (BoC) decision on Wednesday and the European Central Bank's (ECB) meeting on Thursday – will impact the non-yielding yellow metal.