Gold trades at a two-week high

Gold prices marked a third straight rising session on Monday, closing slightly higher with a 0.32% increase, according to Vijay Valecha, chief investment officer, Century Financial.
Tuesday’s Asian session saw relatively flat price movements, with a 0.10% decline, as prices settled near the $3,370 mark.
The yellow metal trades at nearly a two-week high that it touched yesterday, as investors ramped up bets for interest rate cuts at the next FOMC meeting following the weak labor market data in the US released late last week.

Gold prices in the UAE are as follows
24 Carat – RO42.65
22 Carat – RO39.00
18 Carat – RO31.55

According to the CME FedWatch Tool, the odds of a 25-bps rate cut at the September meeting now stand at 90.1%, compared to 63.3% from a week ago and 80.3% from a day ago.
A lower interest rate environment bodes well for the non-yielding precious metal. Additionally, trade-related macroeconomic uncertainty is sustaining safe-haven demand for the bullion, with markets now focusing on today’s PMI data prints to gauge the resilience of the US economy.
From a technical standpoint, Gold’s rapid rise from Friday and consequent break of the $3,365 horizontal barrier with a rising RSI above 60 on the 4-hour chart indicates its bullish momentum in the short term.
The price is also trading above the short-term 9-SMA on the 4-hour chart, suggesting a bullish market structure for today.
As prices reached a high of $3,385 yesterday, a definitive move above this level could potentially see prices reach the next resistance near $3,393, which is the high from June 23.
On the downside, the $3,365 horizontal support, followed by the 100-SMA on the 4-hour chart near the $3,349 mark, remains a key level to watch.