After a relatively quiet trading session on Monday, GOLD prices are holding steady in anticipation of Fed rate cuts coming up in a few days. Gold is trading at a little above $1,418 at the time of writing.

Although a rate cut of 0.25% was almost completely expected and priced in by the markets, recent comments from Fed officials have the markets on edge, wondering if the Fed could cut more aggressively. This uncertainty is presently keeping gold prices somewhat stable.

According to the latest data from FedWatch, there is a 77% likelihood for a 0.25% rate cut by the Fed in its July 30-31 meeting. Meanwhile, the likelihood of a 0.50% rate cut by the Fed in July now sits at 23%.

Ahead of the Fed meeting, however, the ECB is due to meet this Thursday and markets are expecting it also to signal a dovish tone in its forward guidance.