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• Gold price holds steady near $2,515  in Wednesday’s early Asian session. 
• The softer USD and bets of Fed easing monetary policy support the Gold price. 
• The Fed Chair Powell's speech at the Jackson Hole symposium will take centre stage on Friday. 

Gold price (XAU/USD) trades flat around $2,515 during the early Asian session on Wednesday. However, the weaker US Dollar (USD) and the expectation that the Federal Reserve (Fed) will likely cut interest rates in September might underpin the yellow metal. 

The weaker US Dollar amid expectations of easing monetary policy by the Fed ahead of the Jackson Hole symposium might provide some support to the precious metal as it makes gold more attractive for other currency holders. Markets have priced in about a 67.5% possibility of the Fed cutting interest rates by 25 basis points (bps) in September, according to the CME FedWatch Tool. 

"The primary drivers of the gold price move are financial investment demand, particularly with ETF buying improving and overall improved sentiment as the expectations of the Fed easing cycle begin in September," said Aakash Doshi, head of commodities, North America at Citi Research. 

Traders will closely watch Fed Chair Powell's speech at the Jackson Hole symposium on Friday for more cues on rate cuts. Dovish comments from the Fed officials might further lift the yellow metal. Furthermore, the ongoing geopolitical tensions in the Middle East might boost the safe-haven asset demand, benefiting the Gold price. 

On the other hand, signs of weaker physical demand in China might cap the upside for Gold. Data showed that the country’s Imports of the precious metal in July fell 24% to 44.6t, the lowest level in more than two years. The sluggish economy in China could weigh on the precious metal as China is the largest producer and consumer of gold. 

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