Gold Price Analysis: XAU/USD hits fresh multi-week highs at $1970 as focus turns to Fed speak

• Gold is trading on the front foot on Monday and recently hit multi-week highs at $1970.
• Safe-haven demand amid risk-off flows in equities thanks to geopolitics and China lockdown concerns is shielding gold from higher yields.
• Ahead, Fed speak and US inflation will be key themes to monitor this week.

Ahead of commentary from Fed policymakers Christopher Waller, Michelle Bowman and Raphael Bostic, who are all partaking in a “Fed Listens” event slated to kick off at 1430BST, spot gold (XAU/USD) prices have been trading on the front foot. About an hour ago, gold prices pushed as high as $1970 per troy ounce, taking them to their highest level since mid-March. Prices have since fallen back to the low $1960s, but XAU/USD still trades with healthy on-the-day gains of about 0.8%.

The gains come despite a further rise in global bond yields, which have seemingly picked up where they left off with things last week. That raises the “opportunity cost” of holding non-yielding assets like gold. However, the precious metal is seemingly being shielded from this headwind amid demand for safe-haven assets as global equities and other risk assets fall amid ongoing worries about the Russo-Ukraine conflict and lockdowns in China.

Ahead, gold traders will be focused on both of these themes, as well as the aforementioned Fed event, where policymakers are likely to reiterate a hawkish message. Fed speak will remain in focus for the rest of the week, but the release of US inflation data on Tuesday and Wednesday will likely steal the limelight. Another big jump could trigger further support on the Fed for rapid policy tightening, a downside risk for gold.