Gold fell below the 50% retracement of the March/May rally at $1,943.86, hitting as low as $1,930.20 during European trading hours. Although XAU/USD bounced off this level, it is struggling to recover above it.
The US Dollar is finding support in the pessimistic market mood and positive macroeconomic data. The Gross Domestic Product (GDP) report showed that the country's first quarter economic growth was revised at an annualized rate of 1.3%.
While this suggests the country can avoid a recession, it could lead to another rate hike to keep inflation in check.