- Gold attracts some buyers in search of opportunities after a modest bearish GAP at the beginning of a new week.
- Something of purchase of USD and commercial optimism act as a wind against for precious metal.
- Operators could refrain from opening aggressive bets before the key FOMC decision on Wednesday.
The price of gold (Xau/USD) has difficulty capitalizing on a modest rebound in the Asian session from a minimum of more than a week and currently quotes around the area of 3,336-3.335 $, practically without changes in the day. The US dollar (USD) becomes positive for the third consecutive day and is considered a key factor that acts as a wind against the raw material. Apart from this, the last optimism fed by a commercial agreement between the US and the European session helps to limit the bullish potential of the precious metal of safe refuge.
However, operators seem reluctant to open aggressive address bets and could choose to wait for more clues on the Federal Reserve (FED) fees path. Therefore, the approach will remain focused on the result of a two -day FOMC meeting on Wednesday, which will boost the USD and provide a new impulse to the price of gold, which does not yield. Apart from this, investors this week will take clues of important macroeconomic data from the USA before positioning themselves for a firm direction in the short term for the Xau/USD torque.
What moves the market today: the bulls of the price of gold remain on the margin in the middle of a stronger USD and commercial optimism
- The president of the United States, Donald Trump, and the president of the European Commission, Ursula von der Leyen, announced a broad trade agreement, with a 15% base tariff on most European goods exported to the US to the US On Monday to extend the commercial truce, the appetite of investors increases by riskier assets.
- The US dollar begins the new week with a moderate tone, since the operators choose to wait for more clues on the path of features of the Federal Reserve. Therefore, the attention will remain focused on the result of the Monetary Policy Meeting of the FOMC of two days that begins on Tuesday. It is widely expected that Fed maintains interest rates without changes in the midst of an still resistant US labor market and concerns that US tariffs could increase inflation in the second half of the year.
- Meanwhile, Trump has repeatedly attacked the president of the Fed, Jerome Powell, personally because of his position on keeping the fees. This adds concerns that the independence of the Fed could be threatened due to the growing political interference. In addition, the governor of the Fed, Chris Waller, and the vice -governor of supervision, Michelle Bowman, appointed by Trump, have advocated a reduction of rates at the July meeting, keeping the USD’s bulls on the defensive.
- Therefore, the crucial decision of the FOMC on Wednesday, together with the policy statement that accompanies her and Powell’s comments at the press conference after the meeting, will be examined in search of tracks on the path of feat cuts of the Fed. Apart from this, investors this week will also face important macroeconomic publications of the US New Yellow Metal without performance.
The price of gold seems vulnerable since the rupture of the ascending trend channel remains at stake
From a technical perspective, Friday’s breakdown below a short -term rise trend channel support and the 50% fibonacci setback level of the recent rebound since the minimum of June was seen as a key trigger for the bassists of the XAU/USD. In addition, the oscillators in the daily graphic have begun to gain negative traction and suggest that the path of lower resistance for the price of gold is down. However, the merchandise showed some resistance below the 61.8% fibonacci level and conducted a modest recovery from the 3,312-311 $ region on Monday. Therefore, it will be prudent to wait for a sales monitoring below that area before positioning for deeper losses. The merchandise could weaken even more below the $ 3,300 brand and re-test the monthly minimum, around the 3,283-3,282 $ zone.
On the contrary, any additional movement is more likely that in front of strong resistance and remains limited near the simple mobile average (SMA) of 200 periods in the 4 -hour graph. The aforementioned barrier is located near the 351-3,352 $ region, above which a short coverage rebound could raise the price of gold to the supply zone of 3,371-3.373 $. A shopping follow-up should pave the way for a movement towards recovering the 3,400 $ brand before the XAU/USD rises even more towards the static barrier of 3,438-3,440 $.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the strongest currency against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.34% | 0.14% | 0.28% | 0.04% | 0.37% | 0.27% | 0.01% | |
| EUR | -0.34% | -0.22% | -0.03% | -0.31% | 0.03% | -0.07% | -0.33% | |
| GBP | -0.14% | 0.22% | 0.02% | -0.08% | 0.26% | 0.15% | -0.10% | |
| JPY | -0.28% | 0.03% | -0.02% | -0.22% | 0.06% | -0.02% | -0.12% | |
| CAD | -0.04% | 0.31% | 0.08% | 0.22% | 0.30% | 0.23% | -0.02% | |
| Aud | -0.37% | -0.03% | -0.26% | -0.06% | -0.30% | -0.11% | -0.37% | |
| NZD | -0.27% | 0.07% | -0.15% | 0.02% | -0.23% | 0.11% | -0.25% | |
| CHF | -0.01% | 0.33% | 0.10% | 0.12% | 0.02% | 0.37% | 0.25% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
