Article by: ETO Markets

Gold prices (XAU/USD) rose steadily during Tuesday's North American session, helped by a weaker U.S. dollar and stable U.S. Treasury yields. Dovish comments from Fed Chairman Jerome Powell raised expectations that the central bank would cut interest rates at its September meeting, weighing on the dollar and providing support for gold prices. Despite strong U.S. economic data and higher than expected consumer confidence, sentiment did not turn. Investors are more focused on the core PCE price index and employment data due on Friday, which will have an important impact on the Fed's decision to cut interest rates. In addition, rising geopolitical tensions in the Middle East, especially the conflict between Israel and Hezbollah, have provided further safe-haven support for gold.

Technicals show that gold's uptrend remains intact and buyers are focusing on key resistance at $…. The failure of the relative Strength Index (RSI) to break through previous highs indicates a potential negative divergence in the market and the risk of a pullback. If gold falls below this week's low of $…, it could pull back further to the July 17 high of $… or even $…. However, if gold breaks the all-time high of $…, it could move further up to $… and even challenge the $… level.