Gold experienced a modest decline during Asian morning trading, potentially driven by technical adjustments. Spot gold retreated 0.1% to $3,367.50 per ounce. Gold futures had posted significant gains on Friday following Fed Chair Powell's apparent openness to a September interest rate reduction.
Analysts suggest that uncertainty regarding whether the Federal Reserve will implement rate cuts beyond September could constrain gold's upward momentum. Vasu Menon, Managing Director of Investment Strategy at OCBC Bank, noted: "Powell also indicated that the Fed will proceed cautiously, which means that even if the Fed cuts rates in September, there's no guarantee it will continue with cuts in October and December."
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