Gold recovers $4,600, buyers unwilling to give up

XAU/USD Current Price: $4,609

• Risk appetite pushes Wall Street higher and dents demand for the US Dollar.
• Federal Reserve officials are delivering hawkish remarks at Jackson Hole.
• XAU/USD turned neutral in the near term as buyers pause.

Spot Gold changed course mid-Thursday, trading around $4,610 during the American session after bottoming for the day at $4,566, a fresh weekly low. The US Dollar (USD) lost its footing despite persistent tensions in the Middle East, with attention on the stock market for a change. Wall Street opened higher, buoyed by Nvidia's results released late Wednesday.

The company reported revenues of $96.22 billion, beating expectations of $92.17 billion and doubling Q2 2025 results. Net income also doubled compared to a year ago, and came in at $53.95 billion or $2.22 per share, up from $1.87 a year ago, while the company expects sales for this quarter to cross the $ 100 billion mark and top $108 billion.

Meanwhile, the Jackson Hole Symposium taking place in Wyoming provides some interesting headlines. Different Federal Reserve (Fed) officials hit the wires, mostly leaning hawkish. Cleveland Fed President Beth Hammack noted that inflation has become persistent, and said now its the time to act. Additionally, Chicago Fed President Austan Goolsbee claimed that tariffs and war-related price increases are a challenge for the Fed, complicating the outlook. Market participants await the appearance of Fed Chair Kevin Warsh on Friday, hoping to get some clues on future rate moves.

XAU/USD Technical Outlook:

In the four-hour chart, XAU/USD trades with a modest bullish bias as it remains above the 100- and 200-period Simple Moving Averages (SMAs) at $4,449.40 and $4,254.05, respectively. However, the metal is consolidating just beneath the 20-period SMA at $4,630.83, which caps the immediate topside for now, while the Relative Strength Index (RSI) indicator sits near neutral levels, as does the Momentum indicator, hinting at fading upside pressure rather than an outright trend reversal.

On the daily chart, XAU/USD maintains a clear bullish bias, with price comfortably above the 200-day SMA at $4,525.26 and the 20- and 100-day SMAs at $4,390.47 and $4,376.46, respectively, suggesting a firmly supported uptrend. Momentum remains constructive, with the 14-day Relative Strength Index near 67.

On the topside, initial resistance is located at the 20-period SMA near $4,630.83, and a clear break above this barrier would open the way for a retest of recent highs. On the downside, the first significant support comes from the 100-period SMA at $4,449.40, ahead of the deeper structural floor provided by the 200-period SMA at $4,254.05, where broader bullish structure would likely be challenged if reached.

(The technical analysis of this story was written with the help of an AI tool. Know more.)