Mixed headlines about China also weigh on XAU/USD price

While the US data allows the US Dollar to edge higher and weigh on the Gold Price, hopes of witnessing a sooner end to the major central banks’ restrictive monetary policies put a floor under the XAU/USD. Not only the policy pivot chatters but headlines about China also defend the market optimists and prod the Gold bears. That said, the Chinese media conveyed details of the Communist Party's Politburo meeting on Monday that cited new difficulties and challenges for the economy while also showing the policymakers’ readiness for prudent monetary and fiscal policies. Before that, China state planner National Development and Reform Commission (NDRC) issued a notice to promote the high-quality development of private investment. That said, NDRC also pledged encouragement of participation in some projects of transport, water and clean energy, as well as in new infrastructure and modern agriculture.

US CB Consumer Confidence may entertain Gold buyers before Fed decision

While the PMIs join China data to keep the Gold sellers hopeful amid a sluggish start to the likely unimpressive day, mainly due to the light calendar, the XAU/USD bears may keep the reins amid a broadly firmer US Dollar. However, Germany’s IFO Survey details for July and the US CB Consumer Confidence for the said month will entertain the Gold traders for the day. Even so, major attention will be given to Wednesday’s Fed monetary policy meeting and Thursday’s ECB announcements for clear directions.

Also read: Federal Reserve Preview: Powell can play three distinct cards, each with a different US Dollar move