Gold Price braces for the first weekly gain in five despite latest retreat.
Firmer US Dollar ahead of Fed Chair Powell’s speech prod XAU/USD bulls.
Confirmation of policy pivot at major central banks can join China-linked optimism to fuel Gold Price upside.
Gold Price (XAU/USD) reverses from a fortnightly high while consolidating the first weekly gains, so far, ahead of the top-tier central bankers’ speeches at the Jackson Hole Symposium. In doing so, the bright metal bears the burden of the recently firmer US Treasury bond yields and the US Dollar. However, the weekly fall can be attributed to the weekly pullback in the bond coupons after they refreshed the multi-year high on Tuesday.
That said, upbeat details of the US Durable Goods Orders for July and firmer mid-tier activity data, as well as employment clues, also allowed the second-ranked Fed officials to defend hawkish monetary policy and propel the US Dollar.
However, the early-week releases of the August PMIs and the upbeat sentiment surrounding the US-China ties, not to forget expectations of witnessing more stimulus from China, put a floor under the XAU/USD prices.
Furthermore, the BRICS flash mixed signals on the dedollarization and prod the Gold buyers ahead of the top-tier event.
That said, the Gold Price remains firmer past the $1,900 support confluence and hence the policymakers’ signals for the end of the hawkish cycle may allow the buyers to return to the table. Among the central bankers, European Central Bank (ECB) President Christine Lagarde and Federal Reserve (Fed) Chairman Jerome Powell gain major attention.
Also read: Gold Price Forecast: XAU/USD could revisit $1,900 area on hawkish Jerome Powell speech
Gold Price: Key levels to watch
As per our Technical Confluence indicator, the Gold Price stays well beyond the short-term key support of around $1,897 comprising the Fibonacci 38.2% on one-week.
Also putting a strong floor under the XAU/USD price is the convergence of the 5-DMA and previous monthly low, around $1,905.
It’s worth noting that, Fibonacci 161.8% on one-day and 61.8% on one-week joins Pivot Point one-day S2 to add strength to the $1,905 support.
Meanwhile, Fibonacci 61.8% on one-day, the middle band of the Bollinger on the one-hour and previous weekly high together restrict the immediate upside of the Gold Price near $1,920.
In a case where the bulls manage to cross the $1,920 hurdle, the Gold Price run-up toward the joint of the Fibonacci 161.8% on one-week, Pivot Point one-day R3 and 200-SMA on four-hour, close to $1,937, can’t be ruled out.
Overall, the Gold buyers remain on the driver’s seat beyond $1,900 despite the latest pullback. However, it all depends upon how well the central bankers justify the dovish bias
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
