• Gold prices fall for the second consecutive day, down 0.6%, despite falling US Treasury yields and rising geopolitical risks.
• The US Dollar Index rises as Fed Chair Powell signals two more 25 bps rate cuts for 2024, dampening Gold's momentum.
• Despite recent losses, Gold remains up over 5.40% for September, marking its best monthly performance since March 2024.

Gold price retreats for the second consecutive day amid month-end flows favoring the Greenback despite falling US Treasury yields. Nevertheless, the golden metal is set to register monthly gains of over 5.40% in September, its best month since March 2024, when Bullion prices rose over 9%. The XAU/USD trades at $2,639, down over 0.6%.

Wall Street trades mixed as Federal Reserve (Fed) Chair Jerome Powell delivers a speech at the 66th NABE Annual Meeting. Powell disregarded a possible 50-basis-point (bps) rate cut in either of the central bank’s two remaining policy meetings. Powell said that if the economy evolves as expected, two more 25 bps cuts will be left in 2024.

The Greenback, as measured by the US Dollar Index (DXY), rises 0.15% to 100.56, a headwind for the non-yielding metal. A light economic docket in the US saw the Chicago National Activity Index, known as the Chicago PMI, improve for the third consecutive month yet remain in contractionary territory.

Geopolitical tensions remain high after Israel attacked Hezbollah’s headquarters in Lebanon, killing its leader in the attack. Although it warrants further upside in Gold prices, according to analysts, Bullion has failed to gain traction.

Meanwhile, China’s economy remains languishing, which has triggered a reaction from the government. The People’s Bank of China (PBoC) is adopting additional measures of stimulus to the economy, which has triggered flows toward its skyrocketing equities market.