• Gold Price bounces off multi-month-old support line as US Dollar ended three-week uptrend on a softer note.
• Downbeat sentiment provides tailwind to US Dollar even as mixed United States data, US credit rating downgrade prod Fed hawks.
• US inflation will be crucial amid easing concerns about Federal Reserve’s September rate hike, downbeat CPI can propel XAU/USD rebound.

Gold Price (XAU/USD) begins the week comprising the key United States inflation without much surprises as it defends the previous day’s corrective bounce off an important support line, mainly backed by mixed US employment report, during early Monday in Asia. In doing so, the XAU/USD seesaws near $1,943, flirting with the 50-DMA hurdle by the press time.

That said, the Gold Price dropped in the last two consecutive week, marking the biggest weekly loss since mid-June, as the US Dollar Index (DXY) managed to print a three-week uptrend despite witnessing mixed data and easing concerns about the Federal Reserve’s (Fed) rate hike in September. The reason could be linked to the risk aversion wave, mainly backed by the Fitch Ratings’ US credit rating downgrade. With this, the Gold traders are more excited about this week’s US inflation numbers, namely the Consumer Price Index (CPI) and Producer Price Index (PPI) for July for clear directions