A slew of China measures to restore the Gold buyer’s confidence struggled to gain acceptance, which in turn challenged the Gold buyers.
On Monday, the People’s Bank of China (PBOC), lowered the one-year Loan Prime Rate (LPR) to 3.45% from 3.55% previous and 3.40% expected. However, the Chinese central bank kept the five-year LPRs unchanged at 4.20%.
On the same line, Chinese state media Xinhua unveiled the news stating the authorities’ plan to introduce subsidies for fertilizers and pesticides in the northern region of the nation, per Reuters. Furthermore, the weekend news from China suggests the policymakers’ plan to infuse more liquidity into the world’s second-largest economy.
Late Monday, the UBS cut China’s 2023 real GDP growth forecast to 4.8% from 5.2%, which in turn pushed the Dragon Nation to take more measures to defend the economy and put a floor under the Gold Price.
It’s worth noting that the news of the nation’s key real estate company and a shadow trust bank struggling to pay their bond commitments triggered the fears of China debt markets and drowned the XAU/USD previously.
Alternatively, the Financial Times (FT) reported during the weekend that China pushes for competition with the Group of Seven (G7) nations while marking its presence at the BRICS meeting where officials from Brazil, Russia, India, China and South Africa spoke. Additionally, the fresh tension between China and Taiwan adds strength to the geopolitical fears but fails to gain major attention amid the cautious mood ahead of this week’s top-tier data/events.
It should be noted that the geopolitical tension surrounding China tests the Gold buyers but the metal’s traditional haven status might allow the XAU/USD to lick its wounds.
All eyes on Jackson Hole but US data may entertain Gold traders
Overall, the mixed markets allow the Gold Price to portray a bearish consolidation ahead of this week’s top-tier data/events. However, major attention will be given to Friday’s Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium. Should Powell manages to defend the hawks, the XAU/USD may witness further downside.
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