Gold Consolidates Over $1,760 Support – Weaker Dollar Underpins Demand

The gold price is trading at a one-month high as bulls pause scoring the largest weekly gain in nearly five months. Nonetheless, the yellow metal falls 0.25 percent intraday, halting a three-day rise near $1,760 in early Monday Europe trading.

The GOLD metal’s recent losses may be linked to the US dollar’s pause near the one-month low, which occurred during the four-day downturn. Nonetheless, the US Dollar Index (DXY) has risen from its intraday low to 105.80 as of press time.

The greenback’s recovery could be connected to the market’s gloomy mood amid new US-China squabbles over Taiwan. The latest hawkish comments from Minneapolis Fed President Neil Kashkari and a stronger print of the Fed’s preferred inflation gauge are likely to have halted the US dollar bears. Furthermore, the cautious mood ahead of Friday’s crucial US Nonfarm Payrolls (NFP) and disappointing Chinese PMI prints for July are likely to have weighed on gold prices.