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Gold slips for third straight day as Fed outlook and Middle East risks loom
Gold is retesting the $4,000 support level, with traders watching the Fed and upcoming US June PCE inflation data.
Gold prices eased for a third straight day and moved back toward the important $4,000 support level, with early optimism about diplomatic efforts in the Middle East fading after renewed attacks involving US and Saudi forces in Iraq, according to Action Forex.
The dollar firmed, leaving gold on the defensive as markets looked ahead to the Fed meeting and related commentary from Chairman Warsh, with expectations that rates would be kept on hold at the July meeting.
Traders also focused on the US June PCE price index, the Fed’s preferred inflation gauge, due on Thursday, which could add clarity to the inflation picture and influence expectations for further policy tightening.
The outlook for gold remains pressured, Action Forex said, particularly if the Fed signals a more hawkish stance, a scenario that could increase the risk of a break below $4,000 and prompt further downside momentum.
Latest closeGold $4,023.80 ▼1.2%