Gold's Decline Continues as Fed Officials Hint at Imminent Rate Cuts

Gold prices fell below $2,510 per ounce on Tuesday, despite expectations of imminent US rate cuts and rising geopolitical tensions. Last week, Federal Reserve Chair Jerome Powell indicated a likely interest rate cut in September, signaling the central bank's readiness to lower rates as inflation nears its 2% target, while also noting concerns about a weakening labor market. On Monday, San Francisco Fed President Mary Daly supported Powell’s dovish view, stating that “the time to adjust policy is upon us.” Similarly, Richmond Fed President Barkin expressed support for reducing interest rates in light of a cooling labor market, despite still seeing potential inflationary risks. Meanwhile, escalating geopolitical risks in the Middle East have driven increased demand for safe-haven assets such as gold.

Technically the first support level is at 2,500. If this level is breached, the next supports to watch will be 2,470 and 2,430. On the upside, the initial resistance is at 2,520; if this level is surpassed, the next targets will be 2,532 and 2,550.