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Home Gold News Gold Price Dips Near $2,500 as Strong USD and China’s Economic Concerns Weigh

Gold Price Dips Near $2,500 as Strong USD and China’s Economic Concerns Weigh

by anna

Gold prices (XAU/USD) continued their decline near the $2,500 mark on Monday, pressured by a stronger U.S. dollar following the release of July’s Personal Consumption Expenditures (PCE) Index. Additionally, concerns over a sluggish economy in China, the world’s leading gold buyer, have further contributed to the precious metal’s downward pressure.

Despite the current weakness, expectations of a potential interest rate cut by the U.S. Federal Reserve in September could help mitigate gold’s losses. Lower interest rates would decrease the opportunity cost of holding non-yielding gold.

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In the coming days, market focus will shift to key U.S. economic indicators. The ISM Manufacturing PMI for August will be released on Tuesday, followed by the Services PMI on Thursday. On Friday, investors will closely watch the U.S. employment data, including the Nonfarm Payrolls (NFP), Unemployment Rate, and Average Hourly Earnings for August, for further clues on the Fed’s monetary policy stance.

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