Gold Price Forecast: XAU/USD holds below $2,350, geopolitical risks remain in focus

• Gold price trades softer around $2,325 in Monday’s early Asian session. 
• The US PCE price index was not sufficient to prompt the Federal Reserve (Fed) rate cut, weighing on the yellow metal. 
• Israeli Prime Minister begrudgingly accepted the US President’s plan for a ceasefire in Gaza on Sunday.

Gold price (XAU/USD) edges lower to $2,325 on Monday during the early Asian trading hours. The yellow metal trims gains after the US Personal Consumption Expenditure (PCE) data for April showed price pressures cooled in April. Meanwhile, the ongoing Middle East geopolitical risks might provide some support to gold, traditional safe-haven assets. 

The recent US PCE inflation report was not sufficient to prompt a Federal Reserve (Fed) rate cut, and the central bank might need some time to achieve its goal. Investors initially anticipated the first rate cut to come in March, but it got pushed to September. This, in turn, weighs on the precious metal as it increases the opportunity cost of holding the non-yielding asset.