Gold Price Forecast: XAU/USD Declines to $2,465 Amid Fed Rate Cut Bets

This downward trend is largely influenced by the risk-on sentiment in the market, which typically diminishes demand for safe-haven assets like gold. Although the drop lacks a clear reason and is expected to remain small, expectations that the Federal Reserve will keep interest rates low are helping limit losses.

Investors are now convinced that the US central bank will begin its rate-cutting cycle in September, which keeps US Treasury bond yields depressed near a multi-month low. This, in turn, weighs on the US dollar and helps to limit the losses in gold prices.

Impact of Fed Rate Cut Expectations and Consumer Resilience on Gold Prices

Gold Price Forecast: Technical Outlook

Gold (XAU/USD) is currently trading at $2,466.15, experiencing a slight decline of 0.01%. The 2-hourly chart highlights several critical price levels that traders should monitor.

The pivot point is set at $2,474.65, serving as a crucial level for determining the next market move.

Immediate resistance is identified at $2,487.44, followed by $2,500.53 and $2,512.73, indicating potential targets if the price manages to break above the pivot point.