Article by: ETO Markets

Gold (XAU/USD) has seen a slight recovery on Friday, even with the US Dollar (USD) showing strength. However, the upside for gold might be capped due to reduced expectations of a US Federal Reserve (Fed) rate cut in September. Rising geopolitical tensions in the Middle East could provide some support for the yellow metal due to increased safe-haven demand.

Gold traders should watch for insights from Fed officials, with Fed's Waller scheduled to speak on Friday. Hawkish comments from Fed policymakers could put downward pressure on gold, as higher interest rates typically increase the opportunity cost of holding non-yielding assets like gold.

Additionally, upcoming US economic data releases, including

- Durable Goods Orders 
- The Michigan Consumer Sentiment Index

Stay updated with Fed speeches and economic indicators to navigate the gold market effectively.