Ella 
Gold prices (XAU/USD) lost momentum near $1,920 during early European trading on Monday. Meanwhile, the U.S. dollar index (DXY) attracted some buyers, hovering around 105.60, close to its highest levels since March 2023.
Despite this, the U.S. argument of “maintaining high interest rates for longer” is still the main driving force for the rise of the U.S. dollar, thus dragging down gold prices. It is worth noting that rising interest rates will increase the opportunity cost of investing in non-yielding assets, which means that the outlook for gold/dollar is not optimistic.
Looking ahead, traders will keep a close eye on Thursday’s annual U.S. second-quarter gross domestic product (GDP) rate and Friday’s core personal consumption expenditures (PCE) price index, the Fed’s preferred measure of consumer inflation. . The full-year figure is expected to fall to 3.9% from 4.2%. Market participants will take cues from these data and find a clear direction for GOLD/USD.
