Gold prices reached a more than one-month high in the previous session, supported by a general weakening of the dollar amid expectations of an interest rate cut in the US. The precious metal is popular among investors amid an expected period of looser monetary policy by the Federal Reserve. Traders believe there is an 86% chance of a 25 basis point rate cut at next month's Fed meeting. Gold usually performs well in a low interest rate environment.

The area above $3400 acts as resistance. If the price consolidates below this level, the downside risk will increase.