On Tuesday, the trading price of Gold edged lower. It is expected that the price of XAU may continue experiencing modest losses.

Since the month of July, the trading value of the XAU/USD pair has continued rising. However, the recent dip in gold prices has managed to erode the highs the yellow metal managed to gain in the recent trading sessions.

Now, the gold price is close to the one-month high that was recorded in the value of gold in the month of July.

Current Trading Price of Gold

According to a report from the forex trading markets, the XAU/USD pair is currently trading at $1,785. It is constantly moving back and forth around the particular trading figure.

The price chart shows that the value of gold is 0.15% down from the value it had at the beginning of today’s trading session.

Due to the intraday dip, the investors have become very cautious and alert about the change in Gold’s trend. They are paying very close attention to the upcoming events that may impact the trading price of the XAU/USD pair.

As the data for the early European session came in, it showed that the pair was trading defensively.

Situation of Gold

As the equity markets have started indicating stability, the value and status of gold being a strong hedge against inflation is fading. As more positive data keeps coming in from the United States, the equity markets may continue gaining more stability.

As the stability keeps growing, the trading value of gold may weaken versus the USD and other currencies.

Although the price of gold is falling deeper, for now, it is expected that the situation may change. The value of gold may not drop after a certain level or a limit on the downside of gold may appear.

Multiple Factors that May Help Gold Stop Further Losses

Things may not be favorable for gold for the time being but the situation may change due to multiple factors.

These factors include the US-China conflicts due to Taiwan and then there are fears of recession. The fears of a recession are growing by the day and the situation may turn out to be bad for the greenback.

These factors may end up putting a lid on the value of the US dollar. Then there are chances of a possible drop in the yields from the US Treasury bonds. Such a fall may continue exerting pressure on the USD and keep pulling its value downwards.

Now, investors are being cautious about making investments in the USD, only when the data surrounding multiple spaces is promising. If the data is indeed promising, then the value of the USD may rise.

At the moment, the investors are not investing heavily in the USD as they are being cautious, which is helpful for the XAU/USD pair.