• Gold Price remains defensive near the lowest level since March, jostles with three-week-old support.
• Federal Reserve Chairman Jerome Powell advocates for further rate hikes and weighs on XAU/USD price.
• Economic, geopolitical fears surrounding China also keeps Gold bears hopeful.
• Hawkish Fed concerns seem already priced-in, XAU/USD sellers need positive surprise from United States data to witness further downside.

Gold Price (XAU/USD) licks its wounds at the lowest levels in three months, sidelined around $1,935 after bouncing off $1,920 support. In doing so, the XAU/USD justifies the market’s inaction amid mixed statements from the United States Federal Reserve (Fed) and unimpressive updates surrounding the US-China ties and China stimulus. Additionally, broad factors about the global central bank actions and a lack of major/events also restrict the Gold Price weakness despite keeping the bears hopeful of late.

Gold Price fails to cheer Federal Reserve Chair Powell’s hawkish testimony

Gold price dropped to the lower level in three months even after Federal Reserve (Fed) Chairman Jerome Powell appear hawkish. The reason could be linked to the absence of any fresh comments, as well as contrasting statements from other Fed Officials.

In his bi-annual testimony to the House Financial Services Committee, Federal Reserve (Fed) Chairman Jerome Powell advocated for raising interest rates somewhat further by year-end. The policymaker also exemplified decelerating a car near the destination while saying, "It may make sense to move rates higher, at a more moderate pace." Even so, the Fed’s Powell mentioned, "We are very far from our inflation target." That said, most of the statements from Fed’s Powell were replicas of the last week’s FOMC statement and hence failed to impress the Gold buyers despite weighing on the US Dollar.

On the contrary, comments from Federal Reserve Bank of Chicago President Austan Goolsbee prod US Treasury yields and the XAU/USD weakness as he said that the decision last week was a close call for him. The central bank has to “do more sniffing” before another rate hike, Fed’s Goolsbee added