Gold Daily Forecast (XAU): Will Fed signals and geopolitical risks push the price above $2,516?

Signals from the Fed: Could interest rate cuts support the gold price?

One of the key factors affecting the price of gold right now is the possibility of a rate cut by the US Federal Reserve. Fed Chairman Jerome Powell hinted at Jackson Hole that rate cuts could be imminent, which could have a positive impact on gold.

Lower interest rates typically benefit gold because they reduce the opportunity cost of holding non-yielding assets like gold. In addition, other Fed officials, including San Francisco Fed President Mary Daly, have suggested that rate cuts may soon be in order.

Geopolitical uncertainty: a boost for gold?

Rising geopolitical tensions, particularly in the Middle East, are also putting gold in the spotlight as a safe haven. The recent military clashes between Israel and Hezbollah and ongoing concerns about Iran have added further uncertainty to the global situation.

Although fears of a major conflict have eased somewhat, the situation remains volatile. Any escalation could drive up the price of gold as investors seek safe havens.

China’s economic slowdown and its impact on gold

Meanwhile, China's sluggish economy is another factor putting downward pressure on gold prices. The People's Bank of China (PBOC) has halted its gold purchases for the third month in a row, weakening overall market support for the metal.

As the world's largest gold producer and consumer, China's economic health plays a significant role in the performance of the gold market. Traders are closely monitoring new data that could indicate changes in China's demand for the precious metal.