Gold prices started the week slightly weaker in the US market after hitting a two-week high last Friday. Earlier, Federal Reserve Chairman Powell's dovish remarks at the Jackson Hole Economic Symposium drove gains across the precious metals sector. Gold prices are recovering early losses and moving slightly higher, consolidating near recent highs around $3,373.
Last Friday (August 25), Powell delivered his final annual address at the Jackson Hole Economic Symposium. He emphasized that the Fed will adopt a cautious approach to monetary policy amidst the evolving economic environment. "The stability of the unemployment rate and other labor market indicators allows us to proceed cautiously when considering adjustments to the policy stance," Powell said. "Nevertheless, given the current restrictive range, the baseline outlook and the evolving balance of risks may require adjustments." His comments highlighted the Fed's balancing act: tariff-driven price pressures may be a one-time shock, but he also hinted that slowing job growth and the already restrictive policy stance are becoming more prominent concerns. This shift in stance reinforced market expectations that the Fed may still implement interest rate cuts in the coming months, even if inflation risks remain.
The market interpreted Powell's remarks as a clear dovish shift, triggering a significant repricing of rate cut expectations. According to Reuters, major brokerages such as Barclays and BNP Paribas now expect the Fed to cut rates by 25 basis points in September, with some predicting another cut in December. The CME FedWatch tool shows the probability of a September rate cut has risen to 87%, up from approximately 71% before Powell's speech. This has led to a decline in U.S. Treasury yields, a rise in Wall Street stocks, and a pullback in the dollar from a two-week high, providing upward momentum for gold.
Gold/USD broke out of a descending wedge pattern on the 4-hour chart last week, then retested the broken resistance level and surged to a two-week high of $3,378 on Friday. This move confirms a bullish reversal structure and suggests renewed buying interest after a period of consolidation. Gold prices traded around $3,370 intraday, holding above the 100-period moving average ($3,357), which is currently acting as immediate support.
Momentum indicators remain bullish: the Relative Strength Index (RSI) remains around 65, indicating that upward momentum remains intact and overbought territory has not yet been entered. The Moving Average Convergence Divergence (MACD) histogram is positive, and the widening gap between the blue and red MACD lines (signal lines) suggests further extension of the bullish momentum.
Overall, gold's breakout-retracement sequence maintains an upside technical outlook, and the bullish tone is likely to persist above $3,350. A firm hold above $3,380 would further solidify the momentum towards $3,400 and higher; however, a break below $3,350 could put the price at risk of falling back into a broader consolidation range.
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Last Friday (August 25), Powell delivered his final annual address at the Jackson Hole Economic Symposium. He emphasized that the Fed will adopt a cautious approach to monetary policy amidst the evolving economic environment. "The stability of the unemployment rate and other labor market indicators allows us to proceed cautiously when considering adjustments to the policy stance," Powell said. "Nevertheless, given the current restrictive range, the baseline outlook and the evolving balance of risks may require adjustments." His comments highlighted the Fed's balancing act: tariff-driven price pressures may be a one-time shock, but he also hinted that slowing job growth and the already restrictive policy stance are becoming more prominent concerns. This shift in stance reinforced market expectations that the Fed may still implement interest rate cuts in the coming months, even if inflation risks remain.
The market interpreted Powell's remarks as a clear dovish shift, triggering a significant repricing of rate cut expectations. According to Reuters, major brokerages such as Barclays and BNP Paribas now expect the Fed to cut rates by 25 basis points in September, with some predicting another cut in December. The CME FedWatch tool shows the probability of a September rate cut has risen to 87%, up from approximately 71% before Powell's speech. This has led to a decline in U.S. Treasury yields, a rise in Wall Street stocks, and a pullback in the dollar from a two-week high, providing upward momentum for gold.
Gold/USD broke out of a descending wedge pattern on the 4-hour chart last week, then retested the broken resistance level and surged to a two-week high of $3,378 on Friday. This move confirms a bullish reversal structure and suggests renewed buying interest after a period of consolidation. Gold prices traded around $3,370 intraday, holding above the 100-period moving average ($3,357), which is currently acting as immediate support.
Momentum indicators remain bullish: the Relative Strength Index (RSI) remains around 65, indicating that upward momentum remains intact and overbought territory has not yet been entered. The Moving Average Convergence Divergence (MACD) histogram is positive, and the widening gap between the blue and red MACD lines (signal lines) suggests further extension of the bullish momentum.
Overall, gold's breakout-retracement sequence maintains an upside technical outlook, and the bullish tone is likely to persist above $3,350. A firm hold above $3,380 would further solidify the momentum towards $3,400 and higher; however, a break below $3,350 could put the price at risk of falling back into a broader consolidation range.
XAUUSD GOLD XAUUSD GOLD XAUUSD GOLD XAUUSD GOLD 
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Real-time strategies are like a beacon guiding your investment path. The market will never disappoint those who persevere and explore wisely....🚀🚀VIP Channel t.me/EagleEyePrecisionAnalysis
👉Exclusive address t.me/Eagle_PreciseAnalysis
👉Exclusive address t.me/Eagle_PreciseAnalysis
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.