Market sentiment improves, gold prices decline.

Gate News bot news, according to FXStreet, during the Asian trading session on Monday, the price of gold (XAU/USD) continued to fall. Last week, the trade agreement reached between China and the United States to accelerate rare earth exports to the U.S. was positively received by the market. The China-U.S. trade agreement and the ceasefire agreement between Israel and Iran boosted risk appetite, weakening the appeal of gold as a traditional safe-haven asset.

Nevertheless, more and more people are betting that the Federal Reserve (Fed) will cut interest rates multiple times this year, and that the timing of the rate cuts may come sooner than previously expected. This could weaken the USD and support the prices of commodities priced in USD, as a weaker USD will make gold cheaper for foreign buyers. Traders are preparing for the Fed's speech later on Monday. Raphael Bostic, President of the Atlanta Federal Reserve Bank, and Austan Goolsbee, President of the Chicago Federal Reserve Bank, are expected to give speeches.

According to a report by Bloomberg, a senior advisor to US President Trump stated on Friday that an agreement with a dozen of the largest trading partners of the United States is expected to be completed before the deadline on July 9.

Data released by the U.S. Bureau of Economic Analysis on Friday indicated that personal spending in the U.S. unexpectedly fell by 0.1% in May, marking the second decline this year. At the same time, personal income in May decreased by 0.4%, the largest drop since September 2021.

The U.S. Bureau of Economic Analysis announced on Friday that the U.S. Personal Consumption Expenditures (PCE) price index increased by 2.3% year-on-year in May, compared to 2.2% in April (revised to 2.1%). This data aligns with market expectations.

In May, the core personal consumption expenditures (PCE) price index, excluding the more volatile food and energy prices, rose by 2.7%, compared to an increase of 2.6% in April (revised to 2.5%). The PCE price index and the core PCE price index increased by 0.1% and 0.2%, respectively, from the previous month.