Gold price (XAU/USD) attracted some dip-buyers near the $2,319-2,318 region and ended in the green at the start of a new week amid bets for a September interest rate cut by the Federal Reserve (Fed). The expectations were reaffirmed by data showing that the US manufacturing sector contracted for the third straight month in June and prices paid by factories for inputs dropped to a six-month low. This adds to signs that inflation is subsiding, which should allow the US central bank to start lowering borrowing costs. Apart from this, China’s economic woes, persistent geopolitical tensions, and political uncertainty in the US and Europe, offered some support to the safe-haven precious metal.That said, a solid US Dollar (USD) recovery from a multi-day low keeps a lid on any further gains for the Gold price. Concerns that a Trump presidency would be more inflationary than a Biden administration triggered a selloff in the US fixed-income market on Monday. This, in turn, pushed the yield on the benchmark 10-year government bond to its highest level in a month, which is seen as acting as a tailwind for the USD and capping the commodity. Traders also seem reluctant and prefer to wait for more cues about the Fed’s policy path before placing directional bets. Hence, the focus remains glued to Fed Chair Jerome Powell’s speech later today and the FOMC minutes on Wednesday.
Daily Digest Market Movers: Gold price struggles to lure buyers despite rising Fed rate cut bets
Technical Analysis: Gold price continues to face resistance near 50-day SMA pivotal resistanceFrom a technical perspective, the Gold price, so far, has been struggling to make it through the 50-day Simple Moving Average (SMA) pivotal resistance. The said barrier is currently pegged near the $2,337-2,338 region and should act as a key pivotal point. A sustained strength beyond should pave the way for a move toward the next relevant hurdle near the $2,360-2,365 supply zone. Some follow-through buying should allow bulls to reclaim the $2,400 round-figure mark and aim towards challenging the all-time peak, around the $2,450 area touched in May.On the flip side, weakness below the $2,319-2,318 area, or the overnight swing low, could find some support near the $2,300 mark ahead of the $2,285 horizontal zone. Failure to defend the said support levels will be seen as a fresh trigger for bearish traders and drag the Gold price to the 100-day SMA, currently near the $2,258 area. The downward trajectory could eventually drag the XAU/USD to the $2,225-2,220 region en route to the $2,200 round-figure mark.More By This Author:Dow Jones Industrial Average Grinds Into The Middle Amid Churning Friday Markets USD/CHF Price Analysis: Probably In New Short-Term Uptrend EUR/GBP Price Analysis: Correcting Within A Medium-Term Downtrend
