The US Dollar is experiencing a minor setback from its two-month high against other major currencies due to the slow performance of US Treasury bond yields. Although the US Dollar is weakening, Gold price is still under pressure because of the potential risk of a US recession, even though the debt deal still needs to be approved by Congress.
The recent decline in Gold price is also due to the expectation of a 25 basis points rate hike by the US Federal Reserve (Fed) in June. Market predictions indicate a 62% chance of a rate hike next month, up from 12% last week. Strong US economic data and the debt-ceiling extension could give the Fed room to continue its tightening cycle in June.
The first Monday of the week, I still follow the downtrend of Gold. This decline will start around the price range 1953 -1958 And fall back to 193x or even 1925 in the future