Mixed concerns about China, cautious mood defend Gold buyers

Despite the US Dollar’s run-up and the last three-day downtrend, the Gold Price ended up posting weekly gains as the market’s anxiety ahead of this week’s data/events pushed traders toward the traditional safe-haven. Also putting a floor under the XAU/USD could be the mixed headlines about the US-China ties and the recent optimism in India, as well as in the US.

It should be noted that Washington appears in the mood to restore its political ties with Beijing via multiple diplomatic visits and hence suggest likely better days for the Sino-US trade, as well as the Gold price, moving forward.

Elsewhere, markets in India and the US have recently refreshed their yearly highs even as the Treasury bond yields also improved, which in turn suggests more XAU/USD demand from the key customers and battled the Gold bears.

US Q2 GDP, Fed will be the key for XAU/USD traders

Given the lack of confidence in the US Dollar’s recovery, the XAU/USD buyers remain hopeful by keeping their eyes on the first readings of the top-tier United States data, as well as the monetary policy announcements from the Fed.

That said, the first readings of the US second-quarter (Q2) 2023 Gross Domestic Product (GDP) Annualized, expected 1.6% versus 2.0% prior, will be the key data to watch for the Gold traders. On the same line are the initial readings of the US Q2 Personal Consumption Expenditures (PCE) Prices and Purchasing Managers Indexes (PMIs) for July. Additionally, the Fed’s preferred inflation gauge, namely the PCE Price Index and Consumer Confidence for June and July respectively will also entertain the Gold Price traders moving forward.

Apart from the aforementioned top-tier catalysts, today’s preliminary readings of July’s Purchasing Managers’ Indexes (PMIs) for the Eurozone and the US will be crucial to watch for the Gold traders. Should the scheduled data arrive positive for the US, led by stronger prints of services PMI, the Gold Price may witness further downside