XAU/USD maintained its upward momentum above the $4,300 level following the Federal Reserve (Fed) interest rate cut at last week's meeting, in addition to focus on several important economic reports to be published in the United States.
As of 9.15 am, the price of gold was trading at $4,305, up 0.04% compared to the early opening level of Tuesday's trading in the Asian session.
The Fed implemented its third interest rate cut this year last week and gave an additional dovish signal for next year. The lower interest rate environment is seen as having the potential to continue supporting the price of gold to move higher.
Throughout this week, several major economic data will be the focus of investors, especially the ADP employment report, Non-Farm Payrolls (NFP), unemployment rate, retail sales data, PMI, as well as the Fed's inflation gauge through the Consumer Price Index (CPI).
Each published data is expected to provide a clearer indication of the direction of the US dollar's movement towards the end of the year.
In addition, the gold market is also monitoring the progress of Russia-Ukraine peace talks, which could provide an important signal for safe-haven asset movements.
US officials said on Monday that a deal with Ukrainian President Volodymyr Zelenskyy to end the conflict with Russia was reportedly close to being finalized. However, territorial disputes remain unresolved, while strong security guarantees from the US and European countries remain a key issue.
