XAUUSD is expected to stay under pressure due to expectations of 75 basis points from the Fed, according to ANZ

What main factors influence the price of gold? The yellow metal will be under pressure due to tighter monetary policy and an increase in the value of the US dollar. The demand for gold as a safe haven, however, may be supported by rising geopolitical risk and worries of a global recession, according to ANZ Bank experts.

"US inflation reached a 41-year high of 9.1% in June, but gold's role as an anti-inflation hedge was insufficient to allay worries about greater monetary tightening by central banks. Interest rates would increase to 2.25 percent by the end of July and 3 percent by the end of September if the Fed raises rates by 75 basis points over the course of the next two meetings. A trajectory this steep will be detrimental to gold price growth. This pessimism can be countered by the deteriorating economic prospects.

"The 2s/10s yield curve is now more inverted, which typically signals the beginning of a recession. Rising geopolitical uncertainties and a decline in asset prices may also be supportive. Additionally, the US dollar is probably going to weaken near the end of the year, which will help gold. We anticipate that the price of gold will bottom out around $1,700.