• Gold Price pares the biggest weekly gain since April amid mixed sentiment, Fed blackout.
• China headlines, data joins Friday’s US statistics to underpin XAU/USD pullback amid pre-FOMC silence.
• Risk catalysts, US/China clues eyed as Gold Price stays beyond key support confluence.

Gold Price (XAU/USD) remains on the back foot for the second consecutive day, extending the previous day’s pullback from the highest level in a month, as the US Dollar consolidates recent losses amid a sluggish start of the week.

While tracing the main catalysts behind the US Dollar Index (DXY) rebound, after posting the biggest weekly loss since November, Friday’s upbeat US inflation data and fears surrounding China gain major attention. Also exerting downside pressure on the Gold Price is the market’s preparations for July’s Federal Open Market Committee (FOMC) monetary policy meeting, expected to unveil a 0.25% increase in the benchmark interest rates. It should be noted that a two-week silence period for the Fed officials ahead of the FOMC also allows the US Dollar to lick its wounds and weigh on the Gold Price of late. Furthermore, comments suggesting inflation fears from the International Monetary Fund (IMF) also weigh on the XAU/USD price despite the lackluster session and the US Dollar’s inability to remain firmer.

Moving on, a light calendar challenges XAU/USD traders, especially amid the pre-Fed silence of the policymakers. Even so, Monday’s NY Empire State Manufacturing Index for June and Wednesday’s US Retail Sales for the said month will be important to watch for clear directions. Above all, risk catalysts will be crucial for the near-term direction of the Gold Price.

Also read: Gold Price Forecast: XAU/USD could correct toward $1,940 amid a Bear Cross