​​Gold price extends its uptrend as Fed’s Powell gives a clear signal for a rate cut in September

• Gold price gains traction in Monday’s Asian session. 
• Fed’s rate cut expectation and ongoing geopolitical tensions continue to underpin Gold price. 
• The US July Durable Goods Orders are due later on Monday. 

The Gold price (XAU/USD) holds positive ground above the $2,500 psychological support on Monday. The uptick in the precious metal is bolstered by the rising expectations that the US Federal Reserve (Fed) will begin lowering borrowing costs in September. The expectation of lower interest rates is generally positive for Gold as it reduces the opportunity cost of holding the non-interest paying asset. 

Furthermore, the escalating geopolitical tensions in the Middle East and the economic uncertainty are likely to boost the safe-haven demand, benefiting Gold price. On the other hand, the sluggish demand in the Chinese economy might undermine the yellow metal as China is the largest producer and consumer of gold worldwide. Later on Monday, the US July Durable Goods Orders are due. The highlights for this week will be the preliminary US Gross Domestic Product Annualized (GDP) for the second quarter and the Personal Consumption Expenditures-Price Index (PCE) for July, which will be released on Thursday and Friday, respectively. 

Daily Digest Market Movers: Gold price remains strong amid firmer Fed rate cut expectations

• Fed Chair Powell said on Friday at the Kansas City Fed's annual economic symposium in Jackson Hole, "The time has come for policy to adjust.” 
• The July FOMC Minutes released last week indicated a “vast majority” of Fed officials believe a September cut will be appropriate so long as there are no data surprises. 
• Philadelphia Fed President Patrick Harker said that he supports two or three interest rate cuts in 2024, barring any substantial changes to US economic data.
• Chicago Fed President Austan Goolsbee stated that monetary policy is currently at its most restrictive level, and the Fed’s focus is now shifting towards achieving its employment mandate.  
• Hezbollah launched hundreds of rockets and drones at Israel early on Sunday, as Israel's military said it carried out a wave of pre-emptive strikes across southern Lebanon to thwart a large-scale rocket and drone attack by Hezbollah, per Reuters.

Technical Analysis: Gold price continues its long-term bullish momentum

Gold price trades in positive territory on the day. The precious metal has traded within a five-month-old ascending trend channel. However, the overall bullish environment for the yellow metal remains intact as it holds above the key 100-day Exponential Moving Average (EMA) on the daily chart. Additionally, the 14-day Relative Strength Index (RSI) stands in the bullish zone near 62.70, suggesting that the trend is still in favor of the bulls.

If Gold prints a couple more bullish candlesticks, we could see a rally to the $2,530-$2535 region, the record high and the upper boundary of the trend channel. A decisive break above this level may draw in more buyers who could sustain an upswing all the way to the $2,600 psychological barrier. 

On the flip side, the initial support level emerges at $2,470, the low of August 22. If XAU/USD sees more bearish candlesticks below the mentioned level, then the yellow metal could draw in enough sellers to drag it down to the $2,432, the low of August 15. The crucial contention level is seen in the $2,350-$2,360 zone, the lower limit of the trend channel and the 100-day EMA.