Gold Surges Above $2,390 on Rate Cut Expectations

Gold rose above $2,390 per ounce on Wednesday following a decline in the previous session. The metal's upward momentum remained strong, fueled by expectations of multiple rate cuts from the Federal Reserve in response to weak US economic data. While Fed policymakers dismissed concerns that the weaker July jobs data signals a recession, they emphasized that rate cuts are necessary to prevent one. Markets are now pricing in over 100 basis points of total easing for the year, with a significant 50 basis point rate cut anticipated in September. Additionally, heightened tensions in the Middle East continued to support gold's appeal as a safe-haven asset.

Gold starts the day in a sideways trend, with the first support level at 2,387. If this level is breached, the next supports to watch will be 2,375 and 2,355. On the upside, the initial resistance is at 2,400; if this level is surpassed, the next targets will be 2,430 and 2,450.