Gold prices drop ahead of Powell's Testimony
Gold Price (XAU/USD) witnessed a sharp fall as of early morning European session. The precious metal is hovering around a cushion of $1835.00 the price appears to be fluctuating in performance ahead of Federal Reserve (Fed) Chairman Jerome Powell's Testimony on the bi-annual Monetary Policy Report due Wednesday and Thursday. Should Powell be confident regarding a 75 bps July rate hike, the dollar could resume its upward trend, gold price would therefore see a downside break. Supporting gold prices is the strong performance in stocks across the UK and Europe and fears over long-term economic instability.
Looking ahead this week, in the run-up to Powell's Testimony on the bi-annual Monetary Policy Report, gold traders shift their attention to the Chicago Fed National Activity Index and the US Existing Home Sales for short-term guidance.