Gold Slips Below $2,430; Eyes on Fed Rate Cut Speculations

Gold prices fell below $2,430 per ounce on Monday as investors awaited key US inflation data this week for insights into the Federal Reserve's future monetary policy. Expectations for a Fed rate cut in September remain, supported by recent comments from Fed officials suggesting that inflation might be easing enough to justify a rate reduction next month. However, market opinions have become mixed following positive US job data last week, which eased fears that a weakening labor market could signal a recession. Despite this, gold’s appeal as a safe-haven asset persisted due to ongoing geopolitical tensions, including reports of another Israeli airstrike on Gaza and Moscow's promise of a 'tough response' to Ukraine's actions. The US producer inflation data is set to be released on Tuesday, with consumer inflation figures following on Wednesday.

In gold, the first support level is at 2,425. If this level is breached, the next supports to watch will be 2,390 and 2,375. On the upside, the initial resistance is at 2,436; if this level is surpassed, the next targets will be 2,450 and 2,500.