Gold price edges higher ahead of Fed Chair Powell’s second testimony

• The Gold price holds positive ground in Wednesday’s early Asian session. 
• Rising Fed rate cut bets continue to lift the yellow metal. 
• The PBoC refrained from buying gold for a consecutive  month, limits XAU/USD upside. 

The Gold price (XAU/USD) trades with mild gains on Wednesday during the early Asian session. The growing speculation that the US Federal Reserve (Fed) is likely to start cutting rates as early as September continues to support the non-yielding metal. Furthermore, political uncertainties within Europe and globally might boost Gold price, a traditional safe-haven asset.

On the other hand, the pause of China’s central bank Gold purchases for a second consecutive month might prompt traders to reduce bullish bets in the yellow metal as China is the world’s largest gold consumer. Investors will keep an eye on the second semi-annual testimony by Federal Reserve (Fed) Chair Jerome Powell on Wednesday, along with speeches by the Fed’s Michelle Bowman and Austan Goolsbee. On Thursday, the US Consumer Price Index (CPI) inflation data will be closely monitored. This data might offer more clarity on the US interest rate path.