The post Gold price slumps to two-week low despite softer USD, risk-off mood appeared on BitcoinEthereumNews.com.

Gold price continues losing ground for the second straight day and drops to a two-week low. The downfall could be attributed to some technical selling, though it is likely to remain limited. September Fed rate cut bets and the risk-off mood could lend support ahead of the US data. Gold price (XAU/USD) extends the previous day’s sharp retracement slide from the weekly peak and remains under heavy selling pressure for the second straight day on Thursday. The downfall, though lacking any obvious fundamental catalyst, drags the commodity to a two-week low, around the $2,370 level during the Asian session. That said, a combination of factors should help limit any further losses for the precious metal.  The risk-off impulse – as depicted by the overnight slump in the US equities and a generally weaker tone across the Asian markets – could lend some support to the safe-haven Gold price. Furthermore, growing acceptance that the Federal Reserve (Fed) will start cutting interest rates in September keeps the US Dollar bulls on the defensive below a two-week high touched on Wednesday and should act as a tailwind for the commodity.  This, in turn, warrants some caution before placing aggressive bearish bets around the Gold price as traders keenly await the release of the Advance US Q2 GDP print, due later today for a fresh impetus. The focus, however, will remain glued to the US Personal Consumption Expenditures (PCE) Price Index on Friday, which will play a key role in influencing the Fed’s policy path and provide a fresh directional impetus to the non-yielding yellow metal.  Daily Digest Market Movers: Gold price bulls remain on the sidelines despite a combination of supporting factors Gold price attracts some follow-through sellers on Thursday and dives to a two-week low, though any further depreciating move seems elusive…

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Filed under: News - @ July 25, 2024 2:24 am