Peru39;s gold exports to India expected to surge 36 in 2024
Odds of 25 bps rate cut in Sept at 62 CME FedWatch

Aug 26 Reuters Gold prices held ground on Monday, buoyed by a weaker dollar and Treasury yields after U.S. Federal Reserve Chair Jerome Powell39;s dovish remarks cemented expectations for a September rate cut.

Spot gold was steady at 2,510.75 per ounce, as of 0544 GMT, after gaining more than 1 in the previous session. U.S. gold futures were flat at 2,545.90.

Powell on Friday endorsed an imminent start to rate cuts, saying further cooling in the job market would be unwelcome.

The dollar hovered near its lowest level in 13 months, making gold cheaper for other currency holders, while benchmark 10year yields also slipped.

Gold will remain in vogue with investors so long as the dollar remains on the back foot ahead of anticipated rate cuts. If U.S. yields remain suppressed, gold may fancy taking a run towards 2,550 this week if resistance around 2530 can be cleared first, said Tim Waterer, chief market analyst, KCM Trade.

Gold has mostly been in consolidation mode as traders toss up what size of rate cut we might see in September.

Traders have fully priced in a cut for next month, with a 62 chance of a 25basispoint bp easing and a 38 chance of a bigger 50 bps reduction, according to the CME FedWatch tool. A low interest rate environment tends to boost nonyielding bullion39;s appeal.

Elsewhere, Peru39;s gold exports to India are expected to jump 36 to a…