XAU/USD’s extended consolidation is expected to set the stage for a fresh upward acceleration.

Gold edged lower on Tuesday morning after a two-day rally brought prices close to a new record high of $2,531.

Traders are cautious, keeping the metal in an extended consolidation, though demand remains robust due to a weaker dollar driven by Fed rate cut signals and heightened geopolitical tensions in the Middle East.

While a September rate cut is confirmed, uncertainty over its size—70% odds for a 25 basis point cut and 30% for 50 basis points—keeps traders in wait-and-see mode, looking for more clarity from upcoming U.S. economic data.

The immediate bias remains bullish as long as prices stay above the key $2,500 support level (psychological threshold and rising 10-day moving average).

Any deeper pullback below $2,500 should find support above $2,470/64 (August 22 higher low and ascending 20-day moving average) to maintain the bullish outlook and offer better buying opportunities.

Today’s focus will be on U.S. August Consumer Confidence, a key economic indicator.

Res: 2520; 2526; 2531; 2547
Sup: 2500; 2494; 2470; 2464