China, India headlines lure XAU/USD bulls

While softer US data and downbeat US Dollar propel the Gold Price, upbeat catalysts surrounding the world’s top two XAU/USD customers, namely India and China, add strength to the metal’s run-up. Recently, a jump in the Foreign Portfolio Investors (FPIs) rush toward India raised concerns about major Gold demand from the Asian nation. As per the latest update, the FPIs have parked the biggest sum in 10 months in India, not to forget marking the fourth consecutive advance.

On the other hand, the US Treasury Secretary Janet Yellen’s China visit during July 06-09 period witnessed mixed responses from the Gold traders. While the news appears positive for the sentiment on the front, the details seem less impressive as US Treasury Secretary Yellen is likely to flag concerns about human rights abuses against the Uyghur Muslim minority, China's recent move to ban sales of Micron Technology memory chips, and moves by China against foreign due diligence and consulting firms, per Reuters.

It should be noted that the better-than-forecast China’s Caixin Manufacturing PMI, to 50.5 for June versus 50.9 prior and 50.2 market expectations, favor the odds of witnessing more stimulus from Beijing, which in turn can help the Gold Price to remain firmer.

US holiday to restrict Gold Price moves but bulls can keep the reins

While most of the aforementioned catalysts are in favor of the Gold buyers, the United States Independence Day holiday will restrict the XAU/USD moves. The same highlights headlines surrounding China and India to watch carefully for clear directions while allowing the Gold buyers to keep the reins. It should be noted that this week’s Federal Reserve (Fed) Monetary Policy Meeting Minutes and Nonfarm Payrolls (NFP) are the key data that will determine the near-term Gold Price directions.