The hawkish statements of the US Federal Reserve monetary policy makers led to the dollar regaining some positive momentum, which is considered a hindrance to the yellow metal and the continuation of pressure in the downward trend. Economists expect that the Federal Reserve will raise interest rates in September or November by 25 basis points, and the US jobs data for July confirmed this trend.
There is still a jobs report before the next meeting, which will result in the Fed’s decision, and wage inflation had a major role in the direction of opinions for a new rate hike this year. The US CPI data for July will be released on Thursday. The overall CPI annual rate is expected to rise by 0.3 percentage points to 3.3%, the core annual rate will remain unchanged at 4.8% from the previous value, and will continue to exceed the Fed’s target of 2%, and continued inflationary pressures in the US economy are expected to force Fed policy makers to consider continuing the rate tightening cycle.
