The price of gold is maintained below the maximum of a week reached on Tuesday in the medium of mixed signals

• The price of gold consolidates the weekly profits recorded in the last two days in the middle of mixed signals.
• A modest rebound of the USD and a positive risk tone seems to act as an obstacle to merchandise.
• Betting for a Fed rates cut should limit the USD and support the Xau/USD pair in commercial uncertainties.

The price of gold (Xau/USD) extends its lateral consolidation movement when entering the European session on Wednesday and listed below a maximum of a week reached the previous day. The US dollar (USD) gains some positive traction and moves away from its lowest level since February 2022 reached on Tuesday, which, in turn, limits the good recovery of the merchandise from a minimum of almost a month established earlier this week. Apart from this, a generally positive risk tone is observed as another factor that acts as an obstacle to the precious metal of safe refuge.

The USD rise, however, remains limited by the growing acceptance that the US Federal Reserve (Fed) will resume its cycle of rate cuts in the near future. Apart from this, concerns about the worsening of the US fiscal condition should keep any significant assessment of the USD at bay, which, in turn, offers some support for the price of gold. Operators also seem reluctant and choose to wait for the publication of the employment report on Thursday to obtain clues about the trajectory of fed fees, which will boost the USD and the yellow metal without performance.

What moves the market today: the price of gold struggles to attract buyers in the middle of a modest strength of the USD

• The US dollar records a modest rebound from a minimum of more than three and a half years achieved on Tuesday and fails to help the price of gold to build on a two -day recovery from a minimum of almost a month reached earlier this week.
• Comments from the governor of the Federal Reserve, Michelle Bowman, and Governor Christopher Waller suggested that the US Central Bank could consider cutting the interest rates as soon as in the July monetary policy meeting.
• Meanwhile, the president of the Fed, Jerome Powell, said Tuesday that the US Central Bank would have relaxed the monetary policy for this moment if it were not on the highly uncertain economic path created by the tariff policies of President Donald Trump.
• When asked if Julio would be too soon for markets to expect a rate cut, Powell replied that he will depend on the data. However, operators are valuing more than 20% probability that the Fed cuts the rates at the July meeting.
• More significantly, there is a probability of almost 75% of a reduction of 25 basic points by the Fed at the September monetary policy meeting. This limits any additional recovery of the USD and supports the yellow metal that does not yield.
• In the Front of Economic Data, the Institute of Supply Management (ISM) on Tuesday that economic activity in the US manufacturing sector was contracted for the fourth consecutive month, although at a slower pace in June.
• Separately, the Employment and Labor Rotation Survey (Jolts) revealed that the number of job offers stood at 7,769 million on the last business day of May, above 7,395 million in April and 7.3 million early.
• The US economic agenda on Wednesday includes the publication of the ADP report on employment in the private sector, which could influence the USD and the XAU/USD before the official non -agricultural payroll report (NFP) on Friday.
• Trump threatened to impose higher tariffs on Japanese imports due to the alleged lack of disposal of the latter to buy rice cultivated in the US. This occurs before the deadline of July 9 for Trump’s reciprocal tariffs and feeds uncertainty.

The constructive technical set of the price of gold favors the bullies and supports the case for more profits

The bulls could now wait a movement beyond the maximum of the reout of the previous day, around the 3,358 $ region, before opening new positions around the price of gold. The subsequent movement should allow the merchandise to recover the round level of $ 3,400. A sustained force beyond the latter would deny any short -term negative perspective and change the bias in favor of the Xau/USD bulls.

On the other hand, a weakness below the region of 3,329-3,328 (minimum of the Asian session) could find support near the level of $ 3,300. This is followed by the horizontal area of ​​3,277-3.276 and the weekly minimum, around the 3,246-3,245 region. A convincing rupture below the latter would make the price of gold vulnerable to accelerate the fall towards the support of 3,210-3,200 $ in the direction of the area of ​​$ 3,175.