Gold Prices Await Powell's Speech and FOMC Minutes

Gold prices remained near a record high of $2,500 per ounce on Monday, driven by strong demand for safe-haven assets. The Federal Reserve's policy outlook is being closely analyzed, particularly following recent positive US economic data. This has led to market expectations for a 25 basis point rate cut in September, with a total of 100 basis points of cuts anticipated over the remaining three Fed meetings this year.

US Secretary of State Antony Blinken is in the Middle East to mediate ceasefire talks between Gaza and Israel. However, ongoing strikes from Israel and mixed statements from Hamas and Israel have reduced hopes for a resolution. Meanwhile, tensions are also high between Ukraine and Russia, with Ukrainian forces making advances into Russian territory. Investors are now waiting for Fed Chair Powell’s speech and the latest FOMC minutes later this week for further clarity on monetary policy.

The first support level for gold stands at 2,470. If this level is breached, the next supports to watch will be 2,450 and 2,412. On the upside, the initial resistance is at 2,510; if this level is surpassed, the next targets will be 2,550 and 2,580.