Gold Spot / U.S. Dollar
Long
Updated

Gold Continues Strong Rise – Will the PCE Decide the Trend?

921
XAUUSD is currently in a strong uptrend, breaking through key resistance levels and staying above the EMA (34) and EMA (89), with support at 3,363 USD. The next resistance levels for gold are at 3,400 USD, with TP1 at 3,408 USD and TP2 at 3,435 USD. If gold stays above these support levels and breaks through 3,400 USD, the uptrend will continue, targeting higher levels.

From a fundamental perspective, a few days ago, Fed Chairman Jerome Powell's remarks indicated expectations to maintain a tightening policy if economic data continues to support it. The core PCE index on August 29 will be the deciding factor for gold's trend. If the PCE index is higher than expected (0.3%), the USD could strengthen, putting downward pressure on gold. On the other hand, if the index is lower than expected, the USD will weaken, and gold could continue its strong uptrend.

In conclusion, if gold stays above 3,361 USD and breaks through the 3,400 USD resistance level, the uptrend will continue, with targets of 3,408 USD (TP1) and 3,435 USD (TP2). However, the upcoming PCE index results will be the deciding factor for whether gold can continue its rise. Stay tuned and keep an eye on the market!
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