- Spot gold price fell 0.13% to $2,309.61 an ounce continuing its losses from the previous session. Traders are now keen to acquire the USD in anticipation of the main U.S. inflation data.

- The yellow metal also adhered to a transverse trading scope during most of June ranging from levels of $2,317-$2345/OZ, as it received the uncertainty about the time to reduce U.S. interest rates shadow the forecasts of gold movements.

- Markets are waiting for inflation data for the Personal Consumption Expenditure Index (PCE) due this week, which is the preferred scale of inflation by the Federal Reserve (Fed), and is likely to consider the federal expectations of interest rates.

- The recent signs of the elasticity of the U.S. economy in light of the data of the strong purchasing managers and consumer confidence readings raised fears that the Federal Reserve will have a strong justification for maintaining high interest rates for a longer period, which several Fed officials indicated this week, What gave slight support in the revenues of the US Treasury.

- Fed governor, Michelle Bowman, showed a willingness to raise borrowing costs if the high inflation stopped and said that the Fed has not yet reached the point where it is appropriate to reduce interest rates. - Fed governor, Lisa Cook, indicated that it would be appropriate to reduce interest rates at some point. However, the high inflation expectations will mean keeping monetary policy for a longer period.

- The modified reading of the GDP for the first quarter may also provide more signals on the U.S. economy this week.

- Geopolitical tensions in the Middle East and the prolonged Russian-Ukrainian war may provide some support for the price of gold as a traditional haven and reduce the declining direction.

- Expectations indicated that the U.S. consumer confidence index decreased to 100.4 in June from 101.3 in the previous month, amid concerns about economic expectations. This comes at the top of the last weakness in U.S. retail sales and signs of relief of inflationary pressures, keeping hopes alive in reducing the federal interest in September and working on the opposite winds for the US dollar.

Gold's Technical Analysis

- From a technical perspective, gold is still under bearish momentum, as long as the price moves below the level of $2,345 an ounce. If gold succeeds in breaking out the support level of $2,309, then the next target becomes $2,296, then continues to decline until $2,285/OZ. The negative momentum can extend more towards a $2,225-$2,220 region before the prices decrease towards the levels of $2,200 an ounce.

- The alternative scenario, if gold succeeds in breaking out the resistance level of $2,345 and has stability by closing H4 above the mentioned level, then it may target the resistance level of $2,365, then $2,385 an ounce targeting the level of psychological resistance $2,400 per ounce. Some subsequent long positions may cancel the short scenario and allow a return to the re-test of gold's ATH of $2450 touched in May.