Gold prices have rallied close to 13.00% since the start of the year, as heightened geopolitical uncertainty underpins demand. Persistent divisions among Federal Reserve policymakers over the trajectory of interest rates and monetary measures have also boosted the appeal for the non-interest-bearing asset. Tuesday’s testimony to the US Congress from Fed Chair Nominee Jerome Powell could result in a spike in bullion volatility depending on his views towards shaping policy.
Minutes from the Central Bank’s most recent monetary policy meeting showed that some officials were concerned about the inflation outlook. Also on tap this week is the Senate tax bill, which is staring at a marathon debate as Republicans hope to hold a floor vote as early as Thursday. XAUUSD hit an intra-session high of $1299.20 per troy ounce on Monday before retracing to finish above the $1294.00-mark before pulling back further overnight.