Gold price gains traction in Monday’s Asian session as Fed’s rate cut expectations and ongoing geopolitical tensions continue to support the precious metal. The price of Gold (XAU/USD) remains above the $2,500 psychological support, with expectations of lower interest rates by the US Federal Reserve boosting investor sentiment.
The escalating geopolitical tensions in the Middle East and economic uncertainty are also contributing to the safe-haven demand for Gold. However, concerns about sluggish demand in the Chinese economy, as China is the largest producer and consumer of gold globally, could potentially undermine the metal’s price.
Later on Monday, the US July Durable Goods Orders are set to be released, with key economic data such as the preliminary US Gross Domestic Product Annualized (GDP) for the second quarter and the Personal Consumption Expenditures-Price Index (PCE) for July scheduled for later in the week.
Federal Reserve Chair Powell’s recent comments at the Jackson Hole economic symposium, indicating a potential rate cut in September, have further bolstered Gold’s position. The July FOMC Minutes also suggested a majority of Fed officials support a rate cut next month.
Technical analysis shows that Gold price continues its long-term bullish momentum, trading within an ascending trend channel and holding above the key 100-day Exponential Moving Average (EMA). The Relative Strength Index (RSI) remains in the bullish zone, indicating a positive trend for the precious metal.
Overall, Gold remains a popular choice for investors seeking a safe-haven asset during times of economic uncertainty and geopolitical tensions. The metal’s price movement will continue to be influenced by factors such as Fed rate cut expectations, geopolitical developments, and key economic data releases throughout the week.
