GOLD PRICE OUTLOOK

On Monday, the gold price (XAU/USD) is trading close to the psychological support level of $2,500 with minor losses. On the other hand, there is growing anticipation that the US Federal Reserve (Fed) would start cutting interest rates in September, which could limit the precious metal's decline. Since owning an interest-bearing asset has less opportunity cost, lower interest rates are generally favorable for gold.

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

The price of gold is rising during the day. The precious metal has been trading just above the rising trend channel that has been there for five months. But as long as the yellow metal stays above the important 72-day Exponential Moving Average (EMA) on the daily chart, the general bullish atmosphere for the metal holds.

Gold may rise to the $2,530–$2535 area if it prints a few more bullish candlesticks. A clear break over this mark would attract further buyers, allowing the price to rise all the way to the psychological $2,600 barrier.

On the other hand, the low of August 22 ($2,477.7) is the first level of support. More bearish candlesticks below the indicated level in XAU/USD could attract enough sellers to push the price down to $2,432, the August 15 low. The 72-day EMA, or $2,393 zone, represents the critical level of dispute.