Technical Analysis:
GOLD is currently trying to reach for 2520-2525 zone and we might see price grabbing liquidity from equal highs present around 2527. We can look for selling opportunities around this area again.
Fundamentals:
Gold fell below the $2,500 per ounce mark on Monday, extending its pullback from last week’s record highs due to pressure from a stronger dollar and rising bond yields.
Economic data last week showed that both US headline and core PCE prices increased by 0.2% in July, meeting expectations, while the annual rates remained unchanged, contrary to forecasts of a rise.
This tempered expectations for a substantial 50 bps rate cut by the Federal Reserve in September and was consistent with the backdrop of the economy's general resilience to higher interest rates, following last week’s upward revision to GDP. Nevertheless, markets still anticipate 100 bps in rate cuts over the Fed's remaining three meetings this year.
The ECB is also expected to implement rate cuts, given the sharp slowdown in its inflation rate based on August’s preliminary figures.
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