FXStreet reports that economists at ANZ Bank said that expectations around Fed tapering later this year are set to weigh on XAU/USD.

“Strong economic data through September will be important for the Fed to announce tapering from November. Winding-down of asset purchases later this year and the prospect of rate hikes would be supportive for the US dollar and a headwind for gold prices.”

“Disappointment in jobs data or softer inflation could provide some upside room for the yellow metal.”

“Gold prices have decoupled with US 10y yield and TIPS. However, we don’t see this trend lasting much longer. Our gold valuation model suggests it is still significantly undervalued.”