Gold prices have continued their downward trend for the fourth consecutive day, hovering around $2,400. This decline is primarily attributed to rising US Treasury bond yields and the strengthening US Dollar following news of President Biden’s withdrawal from the presidential race and endorsement of Vice President Kamala Harris.
Market sentiment has been influenced by the potential impact of a Trump victory on inflation and geopolitical dynamics. Meanwhile, traders are eagerly awaiting key US economic data releases, including Q2 GDP figures and the Core Personal Consumption Expenditure (PCE) Price Index, for further insights into the Fed’s monetary policy decisions.
Despite the recent decline, gold’s outlook remains positive, with expectations of Fed rate cuts in September providing support. The disinflation process in the US and easing labor market conditions have reinforced these expectations, although Fed officials are still seeking more data to confirm their stance.
Technically, gold prices have retreated from all-time highs but are showing signs of stabilization. The Relative Strength Index (RSI) remains in bullish territory, suggesting potential for a rebound. For XAU/USD to extend its losses, sellers need to push prices below the key $2,400 level.
