• Gold price drops from daily high of $2,403 to $2,377 as Greenback gains 0.20%.
• High retail prices dampen gold demand in Asia; China's economic concerns persist.
• Investors eye FOMC decision, JOLTS report, ADP data, and key US economic indicators this week.

Gold price dropped on Monday as the Greenback advances some 0.20% as investors brace for the Federal Open Market Committee (FOMC) monetary policy decision, which starts on July 30 and ends the next day, with the statement release and Federal Reserve Chair Jerome Powell's press conference. The XAU/USD trades at $2,377 after hitting a daily high of $2,403.

Wall Street depicts a slightly upbeat market sentiment, and a strong US Dollar keeps bullion prices pressured. Reports that Gold consumer demand in Asia was hampered due to high retail prices and China’s economic growth woes.

Meanwhile, geopolitical risks capped the golden metal losses after Hezbollah’s rocket strike on Israel, which threatens to escalate the conflict in the Middle East.

In addition, traders are eyeing the release of crucial economic data from the US. Investors are eyeing the release of the JOLTS Job Openings report, followed by ADP Employment Change data and the FOMC’s decision.

The Federal Reserve is expected to hold rates unchanged, yet market participants expect the US central bank to lay the groundwork for the beginning of the easing cycle. Traders had priced in a 100% chance for a quarter of a percentage interest rate cut at the September meeting via data from the CME FedWatch Tool.