GOLD:Pressure Mounts with Expected Interest Rate Hike - SHORT

In the early European session, the price of Gold found temporary support around $1,943.00. Although there has been a short-term decline in the value of this precious metal, further losses are expected as the Federal Reserve (Fed) is likely to raise interest rates to address persistent inflation in the United States.

S&P500 futures have recovered some of the losses experienced in the Asian session, suggesting an improvement in market participants' risk appetite. Despite the release of better-than-expected Nonfarm Payrolls (NFP) data on Friday, US equities continued their bullish trend.

Following a strong rally, the US Dollar Index (DXY) has been trading sideways around 104.00. This indicates that the index is consolidating before potentially moving higher. The likelihood of another interest rate hike by the Federal Reserve has also boosted US Treasury yields. The yield on 10-year US Treasury bonds has risen significantly above 3.74%.

After the seventh consecutive contraction in US factory activity, investor attention is shifting towards the upcoming release of the US ISM Services PMI data. While the US Manufacturing PMI has struggled to surpass the 50.0 threshold for the past seven months, the Services PMI has been performing relatively better. The preliminary report suggests a decline in the US Services PMI to 51.5 compared to the previous release of 51.9. However, the New Orders Index, which reflects future demand, is expected to improve to 56.5 from the previous release of 56.1. Considering our technical analysis, which indicates a bearish channel for gold, we are currently seeking a short setup with a target of $ 1,920.00