Gold prices fall amid stronger US Dollar

Reserve Bank of Australia (RBA):

• Australia's inflation rate remains around 4.0%.
• The RBA maintained the cash rate at 4.35%, partly due to concerns over a potential sharp slowdown in the labor market. Future monetary policy adjustments remain a possibility.

European Central Bank (ECB):

• ECB President Christine Lagarde emphasized a cautious stance on further interest rate cuts, citing the strength of the Eurozone labor market. The ECB plans to gather more data before making additional rate decisions.

USD and Bond Yields:

• The USDJPY pair increased by 0.15%, reaching 161.6500, influenced by rising US bond yields.
• Benchmark 10-year Treasury bond yields climbed nearly 14 basis points to 4.479%, driven by expectations of potential policy changes under a possible Trump presidency.

The US dollar is showing notable strength in early trading, while both the Euro and British pound (GBP) are weakening against the dollar.

Gold

Prices experienced a renewed decline on Tuesday, influenced by ongoing buying of the US dollar. However, expectations of a potential rate cut by the Federal Reserve in September may help to curb further losses. Investors are also anticipating insights from Fed Chair Powell’s upcoming speech, as well as the release of the FOMC meeting minutes on Wednesday, which could provide additional direction for the market.