Gold Under Pressure, Investors Await US Inflation Data and Tariff Decisions
Gold prices (XAU/USD) weakened again after failing to break through the $3,400 level in the European session on Monday. Currently, gold prices are down, trading at $3,358. Positive market sentiment—supported by a rebound in Asian stock markets and expectations of a meeting between the US and Russia—has reduced demand for safe-haven assets like gold. However, expectations that the Fed will cut interest rates again in September have limited further declines, allowing gold to maintain technical support even though the US dollar has recovered slightly from a two-week low.
Uncertainty regarding US-China tariff negotiations ahead of the August 12 deadline has also supported gold prices. Investors appear reluctant to make aggressive moves and are choosing to await the release of key data this week—particularly consumer inflation (CPI) on Tuesday and producer inflation (PPI) on Thursday—to gauge the direction of US monetary policy. Furthermore, geopolitical tensions surrounding the US-Russia dialogue on Ukraine have also reduced selling pressure on gold.
The spotlight also focused on statements by Fed officials supporting expectations of interest rate cuts. St. Louis Fed President Alberto Musalem stated that the risk of missing the inflation and employment targets is increasing, while Fed Governor Michelle Bowman reiterated her belief that three interest rate cuts are likely appropriate this year. These expectations were previously reinforced by July's Nonfarm Payrolls data, which showed weakness in the US labor market. (ayu)
Source: Newsmaker.id
