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Gold price has remained subdued around $1,960.00 as the US Dollar Index has attempted a recovery.
In spite of a decline in price pressures, Fed Waller delivered a hawkish commentary.
Gold price is gathering strength for further upside after a stalwart rally.
Gold price (XAU/USD) is demonstrating a subdued performance around $1,960.00 in the early New York session. The precious metal is struggling to deliver a decisive move as investors are hoping that the Federal Reserve (Fed) might skip the policy-tightening regime one more time this month.
After recognizing a consistent decline in inflationary pressures, Fed chair Jerome Powell skipped its policy-tightening spell in May but remained doors open for more rate hikes. June’s inflation report conveyed that price pressures have softened more than expected as prices of second-hand automobiles have dropped sharply.
Meanwhile, S&P500 is expected to open on a mildly bullish note amid a risk-on mood. The US Dollar Index (DXY) has delivered a short-lived pullback to near 100.00, however, the downside bias is still favored as fundamentals are still not supporting. The yields offered on 10-year US Treasury bonds have rebounded to near 3.79%.
In spite of the decline in price pressures, Fed Governor Christopher Waller delivered a hawkish commentary. Fed Waller is confident that two more interest rate hikes are appropriate this year to bring down inflation to 2%.
Gold price is gathering strength for further upside after a stalwart rally on a two-hour scale. An inventory adjustment is under process as inventory is exchanged between institutional investors and retail participants. Potential resistance is plotted from June 07 high around $1,966.70.
Upward-sloping 20-period Exponential Moving Average (EMA) at $1,956.33 is providing support to the Gold bulls.
The Relative Strength Index (RSI) (14) has slipped below 60.00, which indicates exhaustion in the upside momentum.
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