• Gold is continuing its uptrend as markets continue to price in more interest rate cuts from the Fed. 
• Such cuts would make Gold, a non-yielding asset, more attractive. 
• Rising tensions between Israel and Lebanon push up haven demand for the precious metal. 

Gold (XAU/USD) slightly retraces during the European session on Monday after being pushed up to a new all-time-high (ATH) of $2,631 earlier in the day, as markets continue to price in more aggressive interest rate cuts from the Federal Reserve (Fed) whilst rising geopolitical tensions stemming from the Middle East increase safe-haven demand for the precious metal. 

In regard to Fed rate cuts, lower interest rates are positive for Gold, as they reduce the opportunity cost of holding the non-interest-paying asset, making it more attractive to investors.

As such, the decision by the People’s Bank of China (PboC) to lower its 14-day reverse repo rate by 10 basis points (bps) to 1.85% early Monday, as well as inject additional liquidity into the financial system, probably further added to the attractiveness of Gold.