Gold is in downside consolidation below $1800 amid cautious markets. As FXStreet’s Dhawni Mehta notes, XAU/USD bears are testing the bullish commitments as Jackson Hole kicks off.
See – Gold Price Forecast: XAU/USD to suffer a correction lower towards $1750 – Commerzbank
Gold traders look to the Jackson Hole Symposium and US data for fresh direction
“Amidst growing Delta covid variant concerns, the Fed is widely expected to tone down its hawkish stance, pouring cold water on the expectations of a taper timeline. Investors are expected to remain on the sidelines heading into the event while the US GDP and weekly Jobless Claims could also offer some trading impetus. However, the gold price action will likely remain subdued ahead of Powell’s speech due at 14:00 GMT on Friday.”
“XAU/USD has breached the 50-Simple Moving Average (SMA) at $1789, unleashing the additional downside towards the mildly bearish 100-SMA at $1777. Ahead of that support, Wednesday’s low of $1783 could be retested. Should the 100-SMA cushion give way, then a drop towards the $1750 psychological level would be inevitable.”
“Acceptance above the 50-SMA could recall the buyers, aiming for powerful resistance around $1795. That level is the confluence of the 200 and 21-SMAs. Further up, the $1800 threshold will challenge the bullish commitment on its way to the August 24 highs of $1810.”
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