Gold is trading upwards ahead of Chair Powell's testimony before Congress on Tuesday, TD Securities Senior Commodity Strategist Ryan McKay notes.

Traders watch for clues from Powell's testimony

“Precious metals are holding strong as weaker employment data bolsters the odds of a September start to Federal Reserve (Fed) cuts. In this sense, traders are watching for any hints from Chair Powell's testimony before Congress today.”

“As the dust settles with regard to Fed timing, macro interest may be starting to pick up in Gold as ETF positions continue to rise in July, after June saw the first monthly increase since May 2023.”

“Furthermore, while Chinese Gold reserves were flat for a second consecutive month amid their noted pause in buying, top traders on the Shanghai Futures Exchange (SHFE) have added back to their net positions, highlighting Asian demand is set to remain strong.”