XAU/USD finds support at trendline as US dollar weakens on dovish Fed bets

Gold (XAU/USD) has stabilized around the major upward trendline near $2,320, recovering from last week's geopolitical-driven selloff that saw prices drop 2.5% as Israel-Iran tensions eased. The precious metal is finding renewed buying interest as traders increase bets on Federal Reserve rate cuts, with CME FedWatch showing 65% probability of a September cut versus 45% last week. Dollar weakness is providing additional support, with the DXY index declining 0.4% to start July trading. Technical indicators show XAU/USD maintaining its bullish structure above the key trendline support, with immediate resistance at $2,350 and stronger barriers at the all-time high of $2,450. The rangebound price action between $2,300-2,400 is expected to persist until this week's US economic data releases, including ISM Manufacturing PMI and Friday's Non-Farm Payrolls, provide clearer directional catalysts for both gold and the dollar.