XAU/USD strengthens above key $4,400 level
Gold (XAU/USD) maintains strong intraday gains above the $4,400 level during Monday’s Asian session and appears poised for further upside. Rising geopolitical tensions across Latin America and the Middle East, combined with expectations of interest rate cuts by the Federal Reserve, have boosted demand for the non-yielding, traditional safe-haven asset.
Alongside political instability, expectations for rate cuts by the Federal Reserve continue to support gold prices. Investors anticipate that the central bank of the United States may lower interest rates in March and possibly deliver another cut later in the year — especially following the appointment of a new dovish Fed Chair backed by the President of the United States.
These expectations have overshadowed previous hawkish guidance and redirected capital flows toward gold.
Traders now await key economic releases from the United States this week, including Friday’s Nonfarm Payrolls (NFP) report and upcoming inflation data. These indicators will play a crucial role in shaping the Federal Reserve’s policy trajectory and influencing short-term US Dollar dynamics — which in turn will impact gold’s directional momentum.
On the 1-hour chart, the 100-period Simple Moving Average (SMA) slopes downward, keeping the broader tone cautious. However, the XAU/USD pair stands above this average, signaling an intraday rebound. The $4,437.80 level acts as initial support, while the MACD histogram has flipped positive and is expanding — indicating improving bullish momentum. The RSI sits at 63.42, firm but not yet overbought.
As long as gold holds above the descending 100-SMA, the recovery path remains open. A close below this level could expose further retracement, but MACD and RSI currently favor continued buying pressure.