OANDA:XAUUSD The US dollar is looking to stabilize after the Fed's near-weekly drop, limiting Gold's attempt to recover. A fresh rise in US Treasury yields helped bids below the US Dollar.
However, a risk-on rally across Asia indices on rising expectations of Chinese stimulus could keep the Greenback bulls in check, supporting Gold prices.
China's official manufacturing and non-manufacturing PMIs for July offer mixed and consolidated expectations about further stimulus measures to be deployed by the Chinese authorities to stimulate economic recovery.
The official Manufacturing PMi came in at 49.3 from 49.0 in June versus a forecast of 49.2. China's non-manufacturing PMI fell to 51.5 in the report, from 53.2 seen in June. In response, China enacted measures to restore and expand consumption.