The price of gold is coming every week in low demand for USD

The price of gold attracts fresh sellers among renovated purchases and reduced factories lowering the FED rate.
Basically a positive tone of risk is seen as another factor undermining precious metal.
Permanent trade uncertainties may limit losses for unthreatening goods.

The price of gold (Xau/USD) extends the slide overnight from the multi -week peak and still traca in the first half of the European session on Thursday. US President Donald Trump denied the report that it is unlikely to shoot the chairman of the Federal Reserve (FED) Jerome Powell. Adding to this, it assumes that the FED would keep elevated interest rates for a long time, push the American dollar (USD) back to the highest level from June 23, affected on Wednesday and weighs the extraordinary yellow metal.

In addition, the generally positive tone around capital markets is seen as another factor that reduces the demand for gold price and contributes to the endocrine. Meanwhile, investors remain on the edge among the lasting uncertainty related to Trump’s irregular trade policy and their impact on the global economy. This can stop Xau/USD bears from placing aggressive plants and aid limit further losses. Investors are now looking at the macro and speeches from influential FOMC members in order to obtain a fresh impulse.

Daily Digest Market Movers: Gold Price Bears maintain control in Śródddzka, because the monthly USD peak will analyze the monthly peak

Investors were nervous on Wednesday, which prompted the sale of bulky American dollars and by exceeding the unthreatening price of gold at a fresh multi -week summit among reports that US President Donald Trump is trying to remove the chairman of the federal reserve Jerome Powell. However, the variability of the market gave way after Trump told reporters that it is unlikely to release the head of the central bank.
On the front of economic data, the American manufacturer’s price indicator (PPI) did not meet market expectations and remained flat in June. This meant remarkable release of the price of goods sold by producers. Adding to this that the comments of influential FOMC members suggest that the Fed would probably wait at least until September before it resumes its rate.
Meanwhile, the President of New York Fed, John Williams, warned that the impact of commercial tariffs is so far tiny, but will augment over time. Williams added that the economy is in a good place, the labor market is solid, and the present restrictive monetary policy is in the right place to allow decision -makers to monitor the economy before taking the next steps.
Adding to this, President Dallas Fed, Lorie Logan, said that the American central bank would probably have to leave interest rates for a moment to provide low inflation. Logan also noted that tariff increases can cause inflationary pressure, and the June CPI data suggest that the PCE inflation, which Fed aims at the 2% annual rate, will augment.
Nevertheless, traders still value 50 base points this year by the FED this year. This, along with the fear of the potential economic impact associated with Trump’s irregular trade policy, can be the basis of unthreatening precious metal. In fact, last week, Trump informed the leaders of 25 countries with up-to-date tariff rates set on the road on August 1.
On Thursday, the American economic document contains the issue of monthly retail sales, ordinary weekly initial unemployed claims and the Philly Fed production index. In addition, the comments of influential FOMC members will be examined in terms of guidelines regarding the path cut from the FED rate, which drives USD and ensure the impulse of the Xau/USD pair.

The weakness of gold prices below 3,322-3 320 USD may stop near short-term commercial support support

From a technical point of view, the recent price action has been indicating the indecision between traders from the beginning of this month. In addition, neutral oscillators on the daily chart require caution before setting the next stage of directional movement. Therefore, every further slide is more likely that it will find some support near the horizontal zone 3322-3320 USD in front of the figure of a round of USD 3300. Some subsequent sales below 3283-3 282 USD or weekly low affected last Tuesday would lead to the price of gold accelerating the decrease in the correction towards the July swing, around 3248-3 247 $ zone.

On the other hand, the region 3 365-3 366 USD may act as an immediate obstacle before the area of USD 3377 or high at night, above which the price of gold may strive to recover a round number of $ 3,400. Some of the following purchases can potentially raise the goods towards another significant obstacle near the area of 3 434-3 435 USD.

Fed FAQ

The monetary policy in the USA is shaped by the Federal Reserve (FED). The Fed has two fines: to achieve price stability and support full employment. Its main tool to achieve these goals is to adjust interest rates. When prices rise too quick and inflation is above 2% of the Fed target, it raises interest rates, increasing the cost of the loan throughout the economy. This causes a stronger American dollar (USD) because it makes the US a more attractive place for international investors to park their money. When inflation drops below 2% or the unemployment rate is too high, the Fed may reduce interest rates to encourage loans that are weighing on the green garden.

The Federal Reserve (FED) organizes eight political meetings a year, in which the Federal Committee of the Open Market (FOMC) assesses economic conditions and makes monetary political decisions. Twelve Fed-Siedmiu officials of the Governors’ Council, president of the Federal Reserve Bank in New York and four of the other eleven regional presidents of the Bank of Reserve, who serve annually on the basis of trading, took part in FOMC.

In extreme situations, the federal reserve may resort to a politics called quantitative draw (QE). QE is a process in which the Fed significantly increases the credit flow in the detained financial system. It is a non -standard policy measure used during crises or when inflation is extremely low. It was a Fed weapon by choice during the great financial crisis in 2008. This includes Fed printing more dollars and using them to buy high -quality bonds from financial institutions. QE usually weakens the American dollar.

Quantitative twist (QT) is the opposite QE process, in which the federal reserve stops buying bonds from financial institutions and does not reinvest the capital from the bonds that it has in order to buy up-to-date bonds. This is usually positive for the value of the American dollar.