Improved US Treasury yields could exert downward pressure on the price of Gold.trades around $1,920 a troy ounce during the early trading hours in the Asian session on Monday. The precious metal struggles to hold ground near the previous weekly close, experiencing minor support due to the retreating in the US Dollar ., which measures the performance of the Greenback against six other major currencies, is presently trading around 104.80 slightly below its peak since April.
Market participants will better understand China's economic situation through the week, including the challenges that authorities must address to implement the required monetary and fiscal measures to maintain Beijing's target of achieving 5% GDP growth this year. Furthermore, the US Federal Reserve is expected to maintain higher interest rates for an extended duration. Additionally, there is an anticipation that the Fed will implement a 25 basis point interest rate hike by the conclusion of the year 2023. This hawkish stance from the central bank could exert significant downward pressure on Gold prices.
Moreover, investors seek more indications from the US Consumer Price Index for August, which is due on Wednesday.