Gold price drifts lower amid improved market sentiment
TheGoldprice (XAU/USD) extends the decline during Asian trading hours on Monday. A trade deal reached between the US and China last week on how to expedite rare earth shipments to the US was viewed positively by markets. The US-China trade agreement, along with the ceasefire deal between Israel and Iran boosts risk appetite and diminishes bullion's appeal as a traditional safe-haven asset.
Nonetheless, rising bets that the USFederal Reserve(Fed) will cut rates more times this year and possibly sooner than previously expected might undermine the Greenback and support the USD-denominated commodity price as a weaker USD makes Gold cheaper for foreign buyers. Traders brace for the Fedspeak later on Monday. The Atlanta Fed President Raphael Bostic and Chicago Fed President Austan Goolsbee are scheduled to speak.
Daily Digest Market Movers: Gold price loses momentum on US-China trade agreement, Israel-Iran ceasefire deal
Gold price retains a bullish tone in the longer term
The Gold price trades in negative territory on the day. Technically, the precious metal keeps the bullish vibe on the daily chart, with the price holding above the key 100-day Exponential Moving Average (EMA). However, in the near term, the 14-day Relative Strength Index (RSI) is located below the midline near 41.50, suggesting further downside looks favorable.
The first upside barrier for yellow metal emerges near $3,350, the high of June 26. Sustained trading above this level could take XAU/USD back toward the $3,400 psychological level, en route to $3,425, the upper boundary of the Bollinger Band.
In the bearish event, the initial support level for yellow metal is seen at $3,170, the 100-day EMA. A break below the mentioned level might even drag thegoldprice toward $3,120, the low of May 15.
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