Gold price (XAU/USD) extends its steady intraday descent through the early part of the European session on Monday and drops to a one-week low, around the $2,350 area in the last hour. Expectations that a conflict between Iran and Israel will not worsen boost investors' confidence, which is evident from a generally positive tone around the equity markets. Furthermore, expectations that the Federal Reserve (Fed) will delay cutting interest rates amid still sticky inflation remain supportive of the recent US Dollar (USD) bullish run. This, in turn, is seen as a key factor driving flow away from the safe-haven precious metal.

The downside for the Gold price, however, remains cushioned in the wake of firming expectations that major central banks will cut interest rates this year. Traders might also refrain from placing aggressive bearish bets ahead of this week's release of the flash global PMIs on Tuesday and important US macro data – the Advance Q1 GDP report and the Personal Consumption Expenditures (PCE) Price Index on Thursday and Friday, respectively. This, in turn, warrants some caution before confirming that the XAU/USD has topped out in the near term and positioning for any meaningful corrective decline.