Gold Price Forecast: XAU/USD hovers above $1,900 ahead of Fed Chair Powell’s speech

Gold price treads water around $1,915 as Fed Chair Powell’s speech looms.
Mixed Fed talks at Jackson Hole support the precious metal.
US employment data raises concerns over the inflation scenario.

Akhtar Faruqui FXStreet

Gold price struggles to continue the winning streak, trading around $1,915 per troy ounce during the Asian session on Friday. The yellow metal is on the path to recover from the losses registered in the previous four weeks ahead of US Federal Reserve (Fed) Chairman Jerome Powell’s speech at the Jackson Hole Symposium.

The precious metal has shown resistance despite the improving US Dollar (USD), which could be attributed to the mixed Fed talks at Jackson Hole and the recent pullback in US Treasury bond yields. Additionally, moderate economic data from the United States (US), helped the XAU/USD pair to hold ground.

As said, US Durable Goods Orders for July posted a decline of 5.2% as compared to the expectation of 4%, swinging from the 4.4% reading in June. However, Initial Jobless Claims indicated positive employment conditions, which raises concerns over the inflation scenario in the US. For the week ending on August 18, the index dropped to 230K from the previous reading of 240K, which was expected to remain consistent.

China’s modest interest rate cuts and stimulus measures seem to fail to restore the market sentiment as global investors are leaving the country and seeking more spending from the government. The gloomy situation around China is putting pressure on the price of Gold.

The US Dollar Index (DXY) rebounds and trades higher around 104.10, reinforcing the Greenback against the six major currencies. The recovery of the US Dollar (USD) is driven by moderate US employment data, prompting a cautious market sentiment as investors look for additional cues regarding the inflation outlook.

XAU/USD: additional important levels

Overview
Today last price	1915.59
Today Daily Change	-1.33
Today Daily Change %	-0.07
Today daily open	1916.92

Trends
Daily SMA20	1919.36
Daily SMA50	1931.59
Daily SMA100	1958.96
Daily SMA200	1909.38

Levels
Previous Daily High	1923.43
Previous Daily Low	1911.83
Previous Weekly High	1916.29
Previous Weekly Low	1885.13
Previous Monthly High	1987.54
Previous Monthly Low	1902.77
Daily Fibonacci 38.2%	1919
Daily Fibonacci 61.8%	1916.26
Daily Pivot Point S1	1911.36
Daily Pivot Point S2	1905.79
Daily Pivot Point S3	1899.76
Daily Pivot Point R1	1922.96
Daily Pivot Point R2	1928.99
Daily Pivot Point R3	1934.56

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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