The renewed uptick in Gold price could be attributed to the downside consolidation phase of the US Dollar and the US Treasury bond yields. Traders eagerly await US Federal Reserve (Fed) Chairman Jerome Powell’s congressional testimonies for fresh hints on the interest-rate cut timing.

Markets are pricing a 77% chance that the Fed will lower rates in September, according to the CME Group’s FedWatch Tool. Another cut is expected by December.

Friday’s disappointing US labor market report affirmed a Fed rate cut in September after the headline Nonfarm Payrolls (NFP) increased by 206,000 in June, beating the market forecast for a 190,000 gain but April and May readings were significantly revised down by a combined 111,000. Average hourly earnings rose 3.9% year-on-year, as expected, registering its lowest since the second quarter of 2021.

Fed Chair Powell’s words could reinforce dovish Fed expectations, lifting Gold price to all-time highs beyond $2,400 at the expense of the US Dollar and the Treasury bond yields. Powell delivers two days of testimony before the Senate Banking Committee, beginning later on Tuesday and followed by the House Financial Services Committee on Wednesday.

Besides, several other Fed policymakers are also likely to speak on Tuesday, which could drive the Gold price action amid a data-light US calendar.

Gold price tumbled on Monday due to profit-taking and concerns over China’s Gold demand. Gold traders resorted to profit-taking after the bright metal failed at the $2,400 threshold while some repositioned ahead of Powell’s testimony and US inflation data due this week.

The People’s Bank of China (PBOC) said on Sunday, China held 72.80 million troy ounces of Gold at the end of June, unchanged from the end of May, the data showed. This was the second month in a row that the PBOC refrained from adding Gold to its reserves.