• Gold Price struggles for clear directions amid full markets, mixed catalysts.
• PBoC rate cut justifies fears surrounding China economic woes, weigh on XAU/USD price.
• Retreat in yields put a floor under the Gold Price ahead of Fed Chair Jerome Powell’s Testimony, PMI.

Gold Price (XAU/USD) fades two-day-old bearish bias as it recovers from intraday low amid full market’s return. Even so, the yellow metal appears indecisive as a whole amid the mixed catalysts surrounding the US Federal Reserve (Fed) and China, as well as market’s inaction.

That said, fears of China’s economic slowdown gain momentum after the People's Bank of China (PBoC) cuts its benchmark Loan Prime Rates (LPRs) by 10 basis points (bps), matching market expectations. On the previous day, multiple top-tier banks, including Goldman Sachs and JP Morgan, downwardly revised China growth forecasts and raised fears of easy energy demand, considering China’s status as one of the world’s biggest gold consumers.

On the other hand, monetary policy officials from the European Central Bank (ECB) and the Fed have been hawkish so far and hence flag fears of the global economic slowdown, which in turn weigh on the Gold Price.

Moving on, major attention will be given to Fed Chair Jerome Powell’s Testimony and preliminary readings of June’s PMIs for a clear short-term view.