Gold Price Forecast: XAU/USD treads water around $1,920 after mixed statements at Jackson Hole

Gold price trades near $1,915 per troy ounce during the Asian session on Monday, extending the previous week's gains. The recent pullback in United States (US) Treasury yields has contributed to the rebound in the price of yellow metal. Additionally, moderate US economic data released during the previous week along with the mixed statements from the major central bank officials at the Jackson Hole Symposium, underpin the price of the Gold.

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

Market participants are expected to adopt a cautious stance towards China’s economic concerns. According to data released by the National Bureau of Statistics on Sunday, China's Total Industrial Profits (YoY) reported a decline of 15.5% during the first seven months of 2023.

Furthermore, the attention of Gold traders is directed towards the four-day visit of US Commerce Secretary Gina Raimondo to Beijing starting on Sunday. The purpose of this visit is to enhance business ties between the two countries. It's worth noting that the relationship between these two global superpowers is currently at an extremely low point. Investors will also likely monitor China's services and manufacturing PMIs later in the week for further indication of the country’s economic conditions.

The US Dollar Index (DXY), which measures the performance of the Greenback against the six major currencies, trades lower around 104.10 despite the hawkish US Federal Reserve (Fed) remarks in the last week, prompting a cautious market sentiment as investors look for additional cues regarding the monetary policy outlook.

Fed Chairman Jerome Powell restated his support for maintaining "higher for longer" interest rates. He acknowledged that this policy approach has a constraining effect, yet emphasized that the Fed cannot definitively determine the exact level of the neutral rate. Powell also pointed out that there remains a significant amount of progress required to achieve price stability. In light of economic uncertainty, he highlighted the need for adaptable and nimble decision-making in monetary policy.