XAUUSD H2 Idea

- Market expectations for a September rate cut by the Federal Reserve have risen, with a 55% chance of a 50-basis-point reduction now priced in. This potential shift is boosting gold's appeal, as lower interest rates make non-yielding assets like gold more attractive. U.S. jobless claims came in lower than expected at 233,000, suggesting the labour market remains strong and slightly dampening gold's safe-haven appeal. However, with upcoming CPI and PPI reports, traders are awaiting more clarity on the economic outlook.

- Gold demand in India increased due to price corrections, while premiums in China rose on safe-haven buying, reflecting varied global market dynamics. The U.S. Dollar Index edged lower despite recent gains, and Treasury yields steadied after a volatile week, both supporting gold prices. Fed policymakers suggest cooling inflation could lead to rate cuts, with markets expecting further reductions by year-end. The short-term outlook for gold remains cautiously bullish, with key inflation data likely to influence its direction.