The gold market declined during the North American session as market participants digested Federal Reserve (Fed) President Jerome Powell's speech at the European Central Bank (ECB) forum in Portugal.
Powell began to take a 'dovish' stance at a time when US Treasury yields remained strong. The USD currency, on the other hand, remains at a normal level despite experiencing fluctuations throughout the session.
Meanwhile, the price of gold is now at $2,330.31, which is unchanged by 0.03% since it opened in the early Asian trading session.
In his speech, Powell mentioned that disinflation is moving again but said he would like to see further progress before the implementation of interest rate cuts.
He also said that the position of the US economy and the labor market remain strong increasing the Fed's ability to act and they need time to evaluate.
He also acknowledged the risk of two tones among Fed officials becoming increasingly balanced and they need to resolve it immediately.
Earlier, US employment data revealed that job vacancies rose unexpectedly above estimates. This reflects the resilience of the market amid high interest rates at 5.25% to 5.50% over the years.
On Wednesday, the Services PMI data from S&P Global and the Institute for Supply Management ISM were watched by the market to assess the position of the US economy.
Early Thursday morning, the market will be presented with an important report of the minutes of the Federal Open Committee (FOMC) meeting in determining further monetary policy by the central bank.
The next focus will resume on Friday with the Non-Farm Payroll (NFP) report for June.
