Gold rises 0.8% on dovish Fed expectations and geopolitical tensions

Gold prices have climbed 0.8% to $2,342 per ounce, supported by increasing expectations of Federal Reserve rate cuts and escalating geopolitical tensions. The precious metal's advance comes as markets price in a 65% probability of a September rate cut following recent dovish comments from Fed officials. Geopolitical concerns in Eastern Europe and the Middle East have also boosted safe-haven demand, with gold futures volume increasing 15% above the 30-day average. The dollar's weakness, with DXY down 0.3% to 104.45, has made gold more attractive to international buyers. Technical analysis shows gold breaking above the $2,335 resistance level, with the next target at $2,360. The EUR/USD pair has benefited from dollar weakness, rising to 1.0845, while USD/JPY has declined to 156.80 as yen gains on risk-off sentiment. Traders await today's PCE inflation data, which could further influence Fed policy expectations and precious metal pricing.