Fundamental Analysis: The price of gold has dropped recently due to the US Dollar's strength, fueled by higher US core PCE inflation data. This makes gold less attractive because it reduces the chances of the Federal Reserve cutting interest rates in their upcoming meeting in September. While the annual inflation rate increased slightly to 2.7%, it slowed down compared to February's 2.8%. This shift favors bond yields and the US Dollar. On the bright side, the monthly inflation data stayed consistent, meeting expectations.
Technicals - Resistance and Targets: If the downward trend continues, gold could potentially fall to around 2270.00. On the other hand, if it manages to climb back above 2335.00, it may indicate a trend continuation, with a potential target around 2400.50.
Investors will keep a close eye on upcoming data releases and the FOMC meeting scheduled for Wednesday. Recent US economic data showing persistent inflationary pressures has made investors uncertain about potential interest rate cuts by the Federal Reserve. A more hawkish sentiment could further decrease the appeal of gold and push its price down.