• Gold falls 0.28%, reacting to Powell’s ECB forum remarks.
• Powell is cautiously optimistic on disinflation, emphasizes need for more progress before rate cuts.
• US Treasury yields steady, while US Dollar fluctuates in familiar range.
• Strong US labor data: Job vacancies exceed expectations, highlighting economic resilience.

Gold price slid during the North American session as market participants digested Federal Reserve (Fed) Chair Jerome Powell’s comments at a European Central Bank (ECB) forum in Portugal. Powell turned slightly dovish, yet US Treasury yields remained firm. The Greenback fluctuated but remained within familiar levels. Therefore, the XAU/USD trades at $2,324, down 0.28%.

Powell commented that the disinflation process has resumed yet stated that he’d like to see further progress before cutting interest rates. He added, “Because the US economy is strong and the labor market is strong, we have the ability to take our time and get this right.”

He acknowledged the Fed’s dual mandate risks had become more balanced, noting that “we have to manage them.”

US jobs data revealed that job vacancies surprisingly rose above estimates, displaying the robustness of the labor market amid high interest rates of 5.25%-5.50% set by the Fed.

Further data is expected on Wednesday, led by the release of the Federal Open Market Committee's (FOMC) last Meeting Minutes, alongside Services PMIs from S&P Global and the Institute for Supply Management (ISM).

Data will resume on Friday as US markets will be closed on Thursday due to Independence Day. By Friday, traders will be focused on June’s Nonfarm Payrolls (NFP) report.