Gold Price News and Forecast: XAU/USD down 0.45%, but losses could be short-lived
|Gold Price Forecast: Wednesday’s close above $1950 keeps bulls alive ahead of Powell
Gold (XAU/USD) closed above $1950 on Wednesday, having staged a solid comeback from just above the $1900 mark. The yellow metal fell sharply to fresh weekly lows of $1903 after the US Durable Goods data surprised to the upside. The spot gained 1.27% on the day, as the US dollar eventually slipped across the board in tandem the Treasury yields amid dovish expectations from the Federal Reserve (Fed) Chair Jerome Powell’s speech (due at 1310 GMT) at the Jackson Hole Symposium. Powell is expected to deliver a dovish tweak to its monetary policy by hinting at adopting average inflation targeting (AIT) next month. The new framework is mainly aimed to push up inflation, which could exert additional downside pressure on the greenback. The US stocks hit another record high, which hurt the haven demand for the dollar and boosted gold prices.
Gold Price Analysis: XAU/USD down 0.45%, but losses could be short-lived
Gold is trading near $1,945 per ounce, representing a 0.45% decline on the day. The losses could be reversed during the day ahead as the daily chart is reporting a bullish reversal pattern.
The metal first created a Doji candle on Tuesday, indicating indecision in the marketplace and then carved out a long-tailed bullish engulfing candle on Wednesday. In other words, the market has gone from being indecisive to bullish. As such, the hourly chart resistance at $1,962 could come into play. Acceptance above that level would open the doors for $2,000.
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