The price of gold fell by 0.5%, ending a three-day rally, which was caused by partial profit-taking. However, further price declines were limited by expectations of easing of the Fed's monetary policy and continuing concerns about the conflict in the Middle East.
Investors are also preparing for the release of new US data that will help clarify the state of the economy and provide clues about the size of the rate cut next month. According to the CME FedWatch Tool, markets see a 28.5% probability of a 0.5% rate cut in September (down from 29% the week before), and a 71.5% probability of a 0.25% rate cut (up from 71.0% the week before), with a 1% rate cut expected by the end of the year. A low interest rate environment tends to boost non-yielding bullion's appeal.
Experts said that the precious metal is likely to continue to show an upward trend, given its positive results in past cycles of Fed policy easing, strong demand from central banks and its status as a good hedge against geopolitical and economic risks.