Gold prices dropped to their lowest in two weeks after attempting a rebound over two sessions.
Gold declined as market participants remain cautious ahead of key US economic data, which will likely give insights into the Federal Reserve’s potential rate cuts this year.
Important data releases include preliminary Q2 GDP figure, due later today, and the June PCE price index report set for release tomorrow on Friday. Due to the uncertainty, traders might avoid aggressive bets and wait for more clarity on the Fed’s policy direction.
Expectations of the Federal Reserve starting its rate-cutting cycle in September have kept the US Dollar subdued, staying below a recent two-week high. A risk-off sentiment in global equity markets, which usually benefits safe-haven assets like gold, could temporarily support gold prices. Over the longer term, gold could see support from expectations of rising demand in India, continuing geopolitical tensions and concerns about an economic slowdown.
