Gold Price Forecast: XAU/USD holds below $2,350 on stronger US PMI data

• Gold price trades on a weaker note near $2,320 in Monday’s early Asian session. 
• The stronger US PMI data and Fed’s hawkish stance create headwinds for yellow metal. 
• Safe-haven flows amid the Middle East geopolitical tensions might cap the Gold price’s downside.  

Gold price (XAU/USD) edges lower to $2,320 after retreating from two-week highs around $2,368 during the early Asian session on Monday. The stronger-than-expected US Purchasing Managers Index (PMI) released on Friday weighs on the yellow metal. The final reading of the US Gross Domestic Product (GDP) and Core Personal Consumption Expenditures (PCE) Price Index will be in the spotlight this week. 

The US economic data continues to show mixed signals in June. The recent S&P Global showed on Friday that the advanced US Composite PMI for June came in better than expected, rising to 54.6 in June from a final reading of 54.5 in May. The figure registered the highest level since April 2022. The Manufacturing PMI climbed to 51.7 in June from 51.3 in May, beating the estimation of 51.0. Finally, the Services PMI increased to 55.1 from 54.8 in May, above the consensus of 53.7.