GOLD PULLS BACK ON A STRONGER DOLLAR AS MARKET SENTIMENT FALTERS
- Gold eases with the US Dollar favoured by the fragile market mood.
- US Yields remain depressed on hopes that the Fed will signal a dovish turn on Wednesday.
- XAU/USD needs to break the $2,400 resistance to cancel the broader bearish structure.
Gold price (XAU/USD) is going through a moderate pullback on Monday’s European morning, weighed by a stronger US Dollar (USD), after finding resistance around the $2,400 earlier in the day. News reports that the Middle East conflict might spill into Lebanon are keeping investors on their heels and providing a competitive advantage for the safe-haven USD.
Geopolitical risks are overshadowing the highlight of the week, which is the Federal Reserve’s (Fed) meeting, due on Wednesday. The Personal Consumption Expenditures (PCE) Prices Index data for June, as seen on Friday, showed that inflation remains sticky, although at levels near the central bank’s 2% target. Investors remain hopeful that the easing cycle will start in September, and that the Fed might give hints on that direction after this week’s meeting.
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