Gold price surges as Fed’s Powell hints at September rate cut
Gold rallied on Friday, following an indication from Fed Chair Jerome Powell that rates could be cut in September.
Speaking at the annual Jackson Hole symposium, Powell stated that, “the shifting balance of risks may warrant adjusting our policy stance”.
This comes after last month’s adjusted non-farm payrolls data highlighted a weaker labour market than initially feared.
Traders were buoyed by the signal from the Fed Chair, who was holding his final symposium as leader of the central bank.
XAUUSD surged to an intraday high of $3,378, which is its highest point in over ten days, moving past a resistance level of $3,365 in the process.
Prices have somewhat declined as a result of profit-taking; however, should the 14-day relative strength index (RSI) maintain its current move to a ceiling of 57.00, we could see the gold price hit $3,400.
Author
Eliman Dambell
Sayvio AI
With over a decade in financial markets, Eliman brings an experienced and diversified point of view to market analysis. He covers current and historical macro trends to give insights on Metals, FX, Stocks, and Crypto.
