The price of gold moves down in the midst of an improved market feeling

• The price of gold falls in the Asian session on Monday.
• The feeling of improved risk undermines the price of gold, a safe refuge asset.
• Operators prepare for FED statements later on Monday in search of a new impulse.

The price of gold (Xau/USD) extends the fall during the Asian negotiation hours of Monday. A commercial agreement reached between the US and China last week on how to accelerate rare earth shipments to the US was positively seen by markets. The commercial agreement between the US and China, together with the Hostilities cessation agreement between Israel and Iran, drives the appetite for risk and decreases the attractiveness of the ingot as an asset of traditional refuge.

However, the growing bets that the US Federal Reserve (Fed) will cut the rates more times this year and possibly before expected they could undermine the US dollar and support the price of the merchandise called in USD, since a weaker USD makes gold cheaper for foreign buyers. Operators prepare for Fed statements later on Monday. The president of the Fed of Atlanta, Raphael Bostic and the president of the Fed of Chicago, Austan Goolsbee are scheduled to speak.

Daily summary of market movements: The price of gold loses impulse due to the commercial agreement between the US and China, the Hostilities cessation agreement between Israel and Iran

• “The deceleration in the geopolitics has offered an opportunity for investors to begin to take profits due to the future perspectives of some type of kinetic war with China and the developments in the Middle East,” said Daniel Pavilonis, senior market strategist in Rjo Futures.
• The main advisors of the president of the US, Donald Trump, said on Friday that the agreements with up to a dozen the largest US business partners are expected to be completed before the deadline of July 9, according to Bloomberg.
• Personal expense in the US fell unexpectedly 0.1% in May, the second fall of this year, according to the US Economic Analysis Office on Friday. Meanwhile, personal income in the US fell 0.4% in May, the highest decrease since September 2021.
• The US PERSONAL CONSUMPTION PRICE INDEX (PCE) rose 2.3% year -on -year in May, compared to 2.2% in April (reviewed from 2.1%), the US Economic Analysis Office reported on Friday. This reading was in line with market expectations.
• The underlying PCE price index, which excludes volatile food and energy prices, rose 2.7% in May, after the 2.6% increase (reviewed from 2.5%) observed in April. In monthly terms, the PCE price index and the underlying PCE index increased 0.1% and 0.2%, respectively.

The price of gold maintains a long -term bullish tone

The price of gold quotes on negative terrain in the day. Technically, the precious metal maintains the bullish vibrates in the daily chart, with the price remaining above the 100 -day exponential (EMA) mobile average. However, in the short term, the 14 -day relative force (RSI) index is below the midline about 41.50, which suggests that a greater decrease seems favorable.

The first upward barrier for the yellow metal appears about $ 3,350, the maximum of June 26. A sustained trade above this level could lead to the Xau/USD to return to the psychological level of $ 3,400, en route to $ 3,425, the upper limit of the Bollinger band.

In the bearish case, the initial support level for the yellow metal is observed at $ 3.170, the 100 -day EMA. A rupture below the mentioned level could even drag the price of gold to $ 3,120, the minimum of May 15.