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Gold Prices Hover Near $3,407, Waiting for a Big Move

Gold (XAU/USD) prices is holding steady during Monday’s European trading session, but it’s having a hard time breaking through a key level it’s been stuck at for weeks.

The US Dollar (USD) is still weak after comments from Federal Reserve Governor Christopher Waller last week hinted at a less aggressive Fed policy, which is giving gold a bit of a boost. Plus, worries about how President Donald Trump’s trade tariffs might hurt the economy are pushing more people toward gold as a safe bet, marking two days in a row of gains.

That said, investors seem to think the Fed might hold off on cutting interest rates because Trump’s tariffs could raise prices for everyday goods. This could give the USD a lift, which might make traders hesitant to go all-in on gold since it doesn’t pay interest.

So, it’s probably smart to wait for a stronger signal before betting big on gold prices going up, especially since there aren’t any major US economic reports coming out today. Still, the overall vibe seems to favor gold buyers.

Gold Technical Angle

From a technical angle, if gold does push higher, it’ll likely hit some tough resistance around $3,407 which is the top of its recent trading range. If it can break through that convincingly, it could spark some excitement and push gold up to $3,407. If the momentum keeps going, we might even see it test the $3,422-$3,440 zone next.