Gold price drifts higher to around $3,375 in Monday’s early Asian session.
The escalating tensions after the US bombed Iran's nuclear sites have boosted the Gold price.
Fed's Waller said the central bank is in position as early as July for cuts.
The Gold price (XAU/USD) climbs to near $3,375 during the early Asian session on Monday. US President Donald Trump’s decision to join Israel’s war against Iran sharply escalates the conflict, which lifts the precious metal. Traders will keep an eye on the preliminary reading of the US S&P Global Purchasing Managers Index (PMI) for June later on Monday.
The US carried out airstrikes on three nuclear sites in Iran early Sunday, directly entering Israel’s war with Iran despite Trump’s longtime promises to avoid new foreign conflicts. The escalating tensions after the US bombed Iran's nuclear sites boost the safe-haven flows and benefit the Gold price, as it is traditionally considered a hedge during times of political and economic uncertainty.
Federal Reserve (Fed) Governor Christopher Waller said on Friday that the Fed is in a position to cut the policy rate as early as July. The dovish remarks from the Fed officials could weigh on the Greenback and provide some support to the USD-denominated commodity price, as a weaker USD makes Gold cheaper for foreign buyers.
Investors brace for the preliminary reading of US S&P Global PMI for June. Any surprise upside in the US economic data could lift the USD and cap the upside for the yellow metal.
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