GOLD PRICE FORECAST: XAU/USD GYRATES WITHIN $1,955-73 TRADING ZONE – CONFLUENCE DETECTOR

Gold Price fades week-start recovery from key support confluence amid dicey markets.

Mixed concerns about Federal Reserve, US-China ties prod XAU/USD traders.

Light calendar, pre-FOMC blackout of Fed policymakers restrict market moves.

Softer Treasury bond yields exert downside pressure on US Dollar, put a floor under the Gold Price.

Gold Price (XAU/USD) aptly portrays the sluggish markets heading into Tuesday’s European session, after an indecisive week. In doing so, the XAU/USD highlights a lack of major data/events on the economic calendar, as well as mixed concerns about the Federal Reserve’s (Fed) moves and the diplomatic ties between the US and China.

Recent headlines suggest the Sino-American talks are going smoothly but the Taiwan tension keeps poking the optimists. On the other hand, softer US data and previous Fed talks push traders to anticipate nearness to the policy pivot. However, the comments from International Monetary Fund (IMF) Managing Director Kristalina Georgieva hint at more rate hikes from the US central bank and weigh on the Gold Price. Furthermore, the US debt-ceiling deal passage and looming fears about the banking sector adds strength to the downside bias surrounding XAU/USD.

Against this backdrop, the US Treasury bond yields remain pressured as traders rush to the US bonds for risk safety. That said, the US stock futures and the US Dollar Index (DXY) remain directionless of late.