Gold (XAU) Daily Forecast: Price Battles $2,455—Will Uptrend Continue or Reverse?

These geopolitical tensions, including Iran’s defiance against Western calls, are likely to further boost gold prices as investors seek safety in the precious metal amid escalating conflicts.

Gold Prices Supported by Weaker Dollar, Rate Cut Expectations Limit Gains

The US dollar is losing traction as expectations for a Federal Reserve rate cut in September rise, offering some support to gold prices. Investors are awaiting key data this week, including US Retail Sales, Initial Jobless Claims, the Philly Fed Manufacturing Index, and Industrial Production.

July’s inflation data showed the Consumer Price Index (CPI) increased by 0.2% month-over-month, with an annual rate of 2.9%. Core CPI, excluding food and energy, also rose by 0.2% monthly and 3.2% annually.

Phillip Streible from Blue Line Futures notes that expectations have shifted to a 25 basis point cut rather than 50, reducing gold’s momentum. The market now sees a 41% chance of a 50 basis point cut, down from 50% before the CPI data. Cautious Fed officials are likely to dampen gold’s momentum further, despite support from a weaker dollar.