​​Gold price extends its uptrend as Fed’s Powell gives a clear signal for a rate cut in September

• Gold price gains traction in Monday’s Asian session. 
• Fed’s rate cut expectation and ongoing geopolitical tensions continue to underpin Gold price. 
• The US July Durable Goods Orders are due later on Monday. 

The Gold price (XAU/USD) holds positive ground above the $2,500 psychological support on Monday. The uptick in the precious metal is bolstered by the rising expectations that the US Federal Reserve (Fed) will begin lowering borrowing costs in September. The expectation of lower interest rates is generally positive for Gold as it reduces the opportunity cost of holding the non-interest paying asset. 

Furthermore, the escalating geopolitical tensions in the Middle East and the economic uncertainty are likely to boost the safe-haven demand, benefiting Gold price. On the other hand, the sluggish demand in the Chinese economy might undermine the yellow metal as China is the largest producer and consumer of gold worldwide. Later on Monday, the US July Durable Goods Orders are due. The highlights for this week will be the preliminary US Gross Domestic Product Annualized (GDP) for the second quarter and the Personal Consumption Expenditures-Price Index (PCE) for July, which will be released on Thursday and Friday, respectively.