Gold price is struggling to gain ground, remaining below $1,900.
The Gold price is struggling to gain ground, remaining below $1,900.In the Asian session on Monday. The positive US economic data boosts the Greenback generally.Putting some downward pressure on XAUUSD. Meanwhile, the US Dollar Index (DXY).Which measures the value of the US dollar. In relation to six other major currencies, is consolidating its gains at 103.35.
China’s economy has stalled, putting pressure on officials to announce further fiscal stimulus programs.
The People’s Bank of China (PBoC) agreed to lower the one-year Loan Prime Rate (LPR) by 0.5% earlier on Monday.
The 10-year LPR was reduced by 10 basis points (bps) to 3.45% from 3.55%.While the five-year LPR remained steady at 4.2%. The Chinese recovery has stalled due to a worsening property crisis.Slow consumer spending, and declining credit growth, putting pressure on authorities to announce. Further fiscal stimulus initiatives. The favorable news around the Chinese government’s supporting plan may restrict gold’s downside, as China is the world’s largest gold purchaser.
The big event this week will be Federal Reserve (Fed) Chairman Jerome Powell’s speech at the Jackson Hole Symposium.
The Federal Open Market Committee (FOMC) minutes indicated that inflation remained unacceptably high and that officials are concerned about inflation. Fed officials also stated that more rate hikes may be required to meet the inflation objective, and that future rate decisions will be based on incoming data. Jerome Powell, Chairman of the Federal Reserve (Fed),. The Jackson Hole Symposium on Friday will be the main event of the week.
Officials may provide signals about future monetary policy for the full year. The Fed’s less aggressive approach may limit USD gains and act as a tailwind for gold prices.
Gold players will be watching the S&P Global Purchasing Managers’ Indexes (PMI) data.
Gold players will be watching the S&P Global Purchasing Managers’ Indexes (PMI) data and listening to central bankers’ speeches for new impetus. In addition, Fed Chair Jerome Powell’s crucial speech is set for Friday, which might cause volatility in the currency market.
