Gold and Euro prices rise as traders await US data and French political unrest

From Investing.com: 2024-07-02 04:11:00

Gold traders are eagerly waiting for more US data this week as the price of gold remains relatively stable within the range of 2,320–2,340. Weak US data could lead to a rate cut by the Fed in September and boost XAU/USD. Retail demand for gold in China may decrease, but analysts still expect an increase in investment demand. Federal Reserve Chairman Jerome Powell’s speech today may drive XAU/USD towards either 2,380 or 2,300 depending on his dovish or hawkish stance.

The Euro saw a brief rally on Monday following French election results, but failed to hold above 1.07500 due to ongoing uncertainty. German inflation data came in lower than expected, raising the possibility of another rate cut by the ECB in September. EUR/USD might experience volatility today with the eurozone Consumer Price Index report, Powell’s speech, and US JOLTS Job Openings data being key events to watch.

The Australian Dollar struggled on Monday despite the bullish stance of the RBA, which may raise interest rates later this year. AUD/USD has been moving sideways near the 0.67000 resistance level. The market is pricing in a 55% chance of a rate hike by November. The RBA’s report on declining selling prices of exported commodities signals a potential positive impact on the nation’s trade balance. Today’s focus shifts to Powell’s speech and US JOLTS Job Openings report, with AUD/USD likely reacting based on the tone of the speech and the strength of US data.



Read more at Investing.com: Gold, Euro Rise Ahead of Upcoming US Economic Data and Political Unrest in France