Product: XAU/USD Prediction: Increase Fundamental Analysis: During the New York trading session and early Thursday in Asia, spot gold dropped nearly $40, falling below $2,400. On Wednesday, spot gold briefly rose above $2,430 due to a weaker dollar and expectations of a Fed rate cut in September. However, it lost all gains due to profit-taking by traders and rising U.S. Treasury yields, closing down 0.51% at $2,396.86. Gold then fell sharply below $2,400. The U.S. 10-year Treasury yield increased by two basis points to 4.274%, which is unfavourable for gold. Traders are now awaiting the U.S. Q2 GDP data on Thursday and the PCE price index on Friday, the Fed's preferred inflation measure. Technical Analysis: The RSI is still bullish, but it's flattening, indicating buyers and sellers lack direction. On the downside, if gold falls below the July 22 low of $2,384, a deeper correction is possible. The next support level is the 50-day Simple Moving Average (SMA) at $2,359. If sellers push gold below the 100-day moving average at $2,315, it could drop further to $2,300. Gold needs to break above Wednesday's high of $2,430. If it does, the next resistance is $2,450, then the all-time high of $2,483 per ounce, and finally targeting $2,500