Gold prices remain under pressure before the Fed's decision

The world gold price is currently $1,932.7 per ounce, down by $7.8 compared to the previous session opening.

This drop is due to the US Federal Reserve's plan to raise interest rates to control inflation. However, more evidence is required to support this decision.

Additionally, improving employment data may lead the Fed to rethink their current high interest rates. These "hawkish" comments from the Fed have discouraged investors in the metals market. It is expected that the gold market will trade around $1,950 per ounce throughout the summer as the Fed maintains its hawkish stance until the end of the year.

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The US will announce the consumer price index (CPI) in July. According to the forecast, the US inflation rate in July will increase by 0.2%, equal to June. If the actual increase is higher than the forecast, the possibility high is that the Fed will raise interest rates one more time and gold will be under pressure.

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Previously, many expected China's gold demand to increase sharply in the second half of this year thanks to Beijing's economic support policies and the country's gold consumption season.

However, China's real estate and retail markets are still weak. Meanwhile, exports have not improved.