Gold Price Forecast: XAU/USD drifts higher above $2,850 amid the cautious mood

Gold price edges higher to $2,870 in Monday’s early Asian session. 

The uncertainty and global tensions could boost the safe-haven flows, benefiting the Gold price. 

US PCE inflation for January came in with the expectation. 

Gold price (XAU/USD) attracts some buyers to around $2,870 during the early Asian session on Monday. The uncertainty and ongoing Russia and Ukraine conflicts continue to underpin the precious metal. Traders will keep an eye on the US February ISM Manufacturing Purchasing Managers Index (PMI), which is due later on Monday. 

According to the state RIA news agency, an oil refinery in the Russian city of Ufa has caught fire. The regional branch of Russia's emergency ministry reported that residents in nearby areas face no danger from the blaze. However, the cause of the fire is yet to be determined.

Over the weekend, US President Donald Trump on Friday criticized Ukrainian President Volodymyr Zelenskyy for being "disrespectful" and canceled the signing of a minerals deal that would have brought Ukraine closer to resolving its conflict with Russia. Investors will closely monitor the developments surrounding Russia's headlines. Any signs of escalating tensions could boost the Gold price, a traditional safe-haven asset. 

On the other hand, the renewed US Dollar (USD) demand might cap the upside for the yellow metal. US inflation data came in line with expectations, suggesting the US Federal Reserve (Fed) might adopt a cautious stance on further rate cuts. 

The US Personal Consumption Expenditures (PCE) Price Index climbed 2.5% YoY in January, compared to 2.6% in December, the US Bureau of Economic Analysis reported on Friday. Meanwhile, the core PCE Price Index, which excludes volatile food and energy prices, climbed 2.6% on a yearly basis in January, down from 2.9% in December. Both figures came in line with market expectations.