Gold picks up pace, retargets $3,400 on USD selling

Pablo Piovano FXStreet

Gold prices are climbing again, snapping Monday’s brief dip and pushing back toward the key $3,400 per ounce level.

Dollar slide fuels the rally

The renewed push higher comes as the US dollar resumes its downward trend, while mixed Treasury yields add to the momentum. Political jitters also lend support after President Trump’s shock move to fire FOMC Governor Lisa Cook reignited debate over the central bank’s independence.

Fed easing hopes stay alive

Traders continue to price in Fed rate cuts as soon as September, a view reinforced by Powell’s dovish tone at Jackson Hole last week. That helped bullion recover quickly after Monday’s pause.

Data watch

US Durable Goods Orders fell 2.8% in July, but the release barely moved the US Dollar. Attention now turns to the Conference Board’s Consumer Confidence numbers.

Technical picture

Resistance looms at the August ceiling of $3,409 (August 8), followed by the July peak at $3,439 (July 23) and the June top at $3,451 (June 16).

On the other hand, support sits at the July base of $3,268 (July 30) and the June valley at $3,247 (June 30). A deeper pullback could expose the May trough at $3,120 (May 15), with the 200-day SMA at $3,062 as the key longer-term support.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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