Gold edges lower on Tuesday morning after rally in past two days reaching levels ticks away from new record high ($2531).
Traders show hesitation, keeping the price in extended consolidation, but demand for yellow metal remains strong, mainly due to weaker dollar on Fed rate cut signals and growing geopolitical tensions in the Middle East.
Although September rate cut has been confirmed, the size of cut is still unclear with 70% expectations for 25 basis points cut and 30% for 50 basis points, which keeps traders at a slower pace and awaiting next economic data from the US to get more details.
Immediate bias to remain firmly with bulls while the price stays above $2500 support zone (psychological / rising 10 DMA).
Deeper pullback below $2500 should be contained above $2470/64 (Aug 22 higher low / ascending 20DMA) to keep bulls intact and offer better levels to re-join bullish market.
US Aug Consumer Confidence will be in focus as a top economic release from the US today.
Res: 2520; 2526; 2531; 2547.
Sup: 2500; 2494; 2470; 2464.
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