Gold prices remain in a range as bulls await more clues about the Fed’s rate-cutting strategy.

The gold price (XAUUSD) fell modestly on Monday as investors refrained from taking new positive wagers following the recent advance to a new record high, preferring to wait for more clues about the Federal Reserve’s (Fed) policy path.

Dovish Fed predictions drive the USD to a multi-month low, providing support for the Gold.

As a result, the spotlight will remain on the release of the July FOMC meeting minutes on Wednesday and Fed Chairman Jerome Powell’s Speech at the Jackson Hole Symposium on Friday. Powell’s statements will be keenly analyzed for signals regarding the projected rate-cutting trajectory. This, in turn, will have a significant impact on the near-term US Dollar (USD) market dynamics, determining the next leg of a directional move for the non-yielding yellow metal.
Meanwhile, rising consensus that the Fed will begin its policy-easing cycle in September, despite evidence of slowing inflation, has pushed the USD Index (DXY), which monitors the Greenback against a basket of currencies, to its lowest level since January.

Hopes for a cease-fire agreement in Gaza continue to bolster the positive mood and limit the upside.

Aside from that, the potential of further escalation of geopolitical tensions in the Middle East, as well as the protracted Russia-Ukraine conflict, serve as a tailwind for the gold price. That said, The existing risk-on mindset, along with prospects of a truce in Gaza, may limit any major rise for the XAUUSD. Nonetheless, the fundamental background appears to favor bulls, implying that any major corrective dip could be view as a buying opportunity.

Daily Market Movers: Gold price dealers await additional clues regarding the Fed’s rate-cutting plan before putting new bets.

The gold price extends the sideways consolidative price move near the record peak as traders sit on the sidelines, waiting for more Federal Reserve signs before positioning for the next leg of a directional move.
The July FOMC meeting minutes, slated to issued on Wednesday, and Fed Chair Jerome Powell’s presentation on Friday will be examined for hints at the prospect of a greater rate drop in September.
Market players reduced their wagers on the Fed’s more aggressive policy easing after the strong Retail Sales report for July, issued last week, calmed concerns about a probable recession in the world’s biggest economy.
Meanwhile, the CME Group’s FedWatch Tool predicts that the Fed will begin its policy easing cycle at the September meeting and reduce borrowing prices by more than 200 basis points by the end of 2025.

Fed President Neel Kashkari said on Monday that a discussion about perhaps reducing the policy rate in September is reasonable.

Minneapolis Fed President Neel Kashkari said on Monday that a discussion about perhaps reducing the policy rate in September is reasonable now that the balance of risk has moved to the labor market.
Chicago Fed President According to Austan Goolsbee, the US economy is not overheating, so central bank authorities should be cautious about extending restrictive monetary policy beyond what is necessary.
Furthermore, San Francisco Fed President Mary Daly downplayed concerns of a dramatic US economic slowdown, saying that the US central bank should adopt a cautious approach to lowering borrowing prices.
On the geopolitical front, US Secretary of State Antony Blinken announced that Israeli Prime Minister Benjamin Netanyahu has accepted a plan to resolve concerns that were impeding the hostage release arrangement with Hamas.
Negotiations are likely to continue this week, stoking hopes that a truce could lower tensions in the Middle East and the risk of a regional conflict, bolstering investors’ appetite for risky assets.