Gold prices rose for the second day in a row to 2680 dollars, approaching historical highs, benefitting from falling Treasury yields as investors awaited key U.S. economic data this week. A decline in equity markets yesterday further supported the precious metal, as a risk-off sentiment led investors to seek safe-haven assets.

Markets are now anticipating smaller rate cuts by the Federal Reserve at the upcoming FOMC policy meetings. This expectation could strengthen the dollar, consequently limiting and slowing gold’s upside momentum. Investors are also closely watching U.S. retail sales, industrial production, and jobless claims data for new insights into the Fed’s monetary policy direction.

Meanwhile, ongoing geopolitical tensions continue to contribute to gold’s appeal, with uncertainty around the upcoming U.S. elections also increasing demand for the metal as a safe haven. Last but not least, economic uncertainty in China is also supporting gold demand.