Gold Hovers Near $2,400 as Rate Cut Expectations Grow

Gold prices experienced a slight dip from one-month highs in Asian trading on Monday as investors await key indicators on U.S. interest rates, including Federal Reserve Chair Jerome Powell’s testimony and upcoming inflation data. Despite this minor retreat, gold remains near the $2,400 per ounce mark, buoyed by growing expectations of a Fed rate cut in September. The precious metal’s recent gains have been driven by weak labor market data, which has increased the likelihood of rate cuts. Traders are now pricing in a 72% chance of a 25 basis point cut in September, up from 59% last week. The market’s focus this week will be on Powell’s two-day testimony and additional economic cues that could further influence rate expectations and gold prices.