XAU/USD struggled to maintain the upward momentum of the past two days and fluctuated in a narrow range during the Asian session on Monday. The overall positive sentiment in the equity market is seen as the main factor hindering the safe-haven precious metal. The risk of escalating geopolitical tensions in the Middle East could temper optimism in the market. Furthermore, it is expected that the US Federal Reserve (Fed) will take a loosening stance to keep the USD on the defensive and may support precious metals - non-yielding assets.