In the Asian trading session, gold prices have shown a retreating trend, briefly falling below the $4300 mark, and are currently trading around $4285/ounce, with a decline of about 0.5%. This trend is mainly influenced by short-term futures traders taking profits and weak long positions being liquidated. Additionally, the optimistic sentiment regarding progress in Ukraine peace talks has also somewhat weakened gold's appeal as a traditional safe-haven asset, leading to a temporary reduction in its demand.

Despite facing pressure in the short term, the potential downside space for gold prices is expected to be limited. Last week, the U.S. Federal Reserve (Fed) implemented its third rate cut of the year and clearly indicated that it would continue to lower rates in 2026. Lower interest rates will significantly reduce the opportunity cost of holding non-yielding gold, thereby providing solid support for this precious metal. However, the optimistic progress in Ukraine peace talks may limit gold's upside potential, as it reduces market demand for safe-haven assets.

Due to the U.S. government shutdown, the release of a series of important economic data has been postponed and will be concentrated on Tuesday evening. Among them, the U.S. non-farm payroll report will undoubtedly become the absolute focus of the market. This report will provide more key clues for the Fed's future rate path. If the data shows signs of a slowdown in the U.S. labor market, it will further strengthen market expectations for a Fed rate cut, thereby boosting gold prices. In addition, U.S. retail sales data and the Purchasing Managers' Index will also be released that day, which are indicators that investors should closely monitor.