Gold prices eased slightly during the Asian session on Monday and fell to the $1,911-$1,910 zone, or the lowest since July 7 in the past hour. However, the intraday downtrend lacks further selling, warranting caution for the strong bearish traders and positioning for the recent extension of the bearish trajectory witnessed in about the past three weeks.
The Federal Reserve's (Fed) outlook for further policy tightening should lift the US Dollar to fresh six-week highs and turn out to be a major factor acting as a headwind for the US Dollar. Gold price does not yield interest. Bets were reaffirmed by the US Producer Price Index (PPI) on Friday, which rose slightly more than expected in July.
The Federal Reserve's (Fed) outlook for further policy tightening should lift the US Dollar to fresh six-week highs and turn out to be a major factor acting as a headwind for the US Dollar. Gold price does not yield interest. Bets were reaffirmed by the US Producer Price Index (PPI) on Friday, which rose slightly more than expected in July.
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The unimpressive US inflation data allowed Fed policymakers to celebrate a win against price pressures, but traders looked for more details to welcome concerns about the economy. policy pivot. The same goes for concerns about China, the world's largest Gold customer, putting pressure on XAU/USD prices.
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Gold has just experienced a week of continuous declines when both CPI and PPI economic data released are not in favor of Gold. The use of a bounce back makes the market center start thinking that the Fed will keep interest rates high for a long time. An early version of the Fed's easing will be far away
Besides, the US labor market is still very strong when the unemployment rate is only 3.5%, a very impressive number for a large economy like the United States. The hourly earnings of workers are still rising, showing that the pressure of employment is still high and the Fed will still be very difficult.
Besides, the US labor market is still very strong when the unemployment rate is only 3.5%, a very impressive number for a large economy like the United States. The hourly earnings of workers are still rising, showing that the pressure of employment is still high and the Fed will still be very difficult.
