Gold price declines to 2-week lows, $1400 level remains in sight

Singapore (Aug 1)  In the post-meeting press conference, the Fed Chair Jerome Powell described the rate cut as a mid-cycle adjustment of policy and said that the move does not necessarily mean the beginning of a series of rate cuts and prompted some aggressive selling around the non-yielding yellow metal.

Meanwhile, the Fed's hawkish cut triggered a fresh leg of an upsurge in the US Dollar, which extended through the early European session on Thursday and further collaborated towards driving flows away from the dollar-denominated commodity.

However, given the fact that the US-China trade negotiations concluded without a major breakthrough, a slight deterioration in the global risk sentiment extended some support to the precious metal's safe-haven status and might turn out to be the only factors that might help limit deeper losses.

Moving ahead, Thursday's US economic docket - highlighting the release of ISM manufacturing PMI, will now be looked upon for some short-term trading impetus later during the early North-American session and ahead of Friday's closely watched US monthly jobs report (NFP).

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