Gold prices are still volatile in the near future

The global gold price continues to decline as it remains weighed down by monetary policies. Gold slightly reverses its course and decreases to $1,892.4 per ounce.

Gold trades near its lowest level in six months after the Federal Reserve's monetary policy meeting in July. The Fed maintains a "hawkish" stance on monetary policy and leaves open other options for interest rate hikes due to persistently high inflation pressures.

The strong tightening of the Fed's monetary policy is the biggest obstacle for gold, and precious metals continue to face difficulties in this environment.

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In the short term, gold will fall as strong economic data, moderate inflation and strong labor data are increasing the likelihood that the US economy will escape the threat.

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The latest US retail sales data, which will be released on Tuesday, could contribute to the debate. So far, US consumers have remained resilient even in the face of rising interest rates, and this momentum could bolster the dollar.

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The price of gold has become more costly for buyers who hold currencies other than the dollar, as indicated by a 0.2% increase in the dollar index.

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The strong tightening of monetary policy by the Federal Reserve poses the biggest challenge for gold and precious metals, with an 86.5% chance that the Fed will keep interest rates within a range of 5.25% to 5.50%.

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Daniel Hynes, senior commodity strategist at ANZ, said that while he cannot rule out a drop below $1,900 an ounce, he sees signs of solid support in the market.

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Currently, the benchmark interest rate in the US is in the range of 5.25 - 5.5%, the highest level in the past 22 years.

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Gold is on the right track

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good luck everyone