Gold prices came under downward pressure during Asian trading on Thursday, extending their weak performance after rebounding from a three-week low the previous day. Minutes from the Federal Reserve's July 30-31 meeting showed that most officials believed "inflation risks remain higher than employment risks" and emphasized that current interest rates are broadly appropriate.
This hawkish tone dampened market expectations for a significant rate cut in September, keeping the dollar strong and weighing on gold.
Meanwhile, optimism about a possible easing of geopolitical tensions further reduced safe-haven demand. Nevertheless, some uncertainty persists, limiting gold's downside.
Market participants will be looking to the upcoming global manufacturing and services PMIs for fresh clues about the health of the global economy. Additionally, the weekly US initial jobless claims data and the Philadelphia Fed manufacturing index could also lead to short-term volatility.
More closely watched is Fed Chairman Powell's speech at the Jackson Hole symposium on Friday. Investors are looking for clues about the future path of monetary policy, which will directly determine the medium-term direction of the dollar and gold.
The daily chart shows that gold is finding support at its 100-day moving average ($3,312-3,311), holding near the lower end of its three-month range. A break below this support could trigger further technical selling, pushing gold prices towards $3,300 or even the key levels of $3,270-3,265.
A break above this range would signal the formation of a gold top, increasing short-term downside risk. Conversely, a sustained break above the intraday high near $3,352 could trigger short-covering, with upside targets at $3,375, $3,400, and the strong resistance zone of $3,434-3,435, which also marks the top of the medium-term range.
Gold is currently caught in a volatile market: on the one hand, US economic data and the Federal Reserve's hawkish stance are supporting the dollar and weakening gold prices; on the other hand, market concerns about an economic slowdown and potential risks continue to provide some safe-haven demand.
In the short term, gold prices will closely follow the US dollar and Fed policy expectations, and Powell’s speech at Jackson Hole may become a key catalyst to break the volatile pattern.
XAUUSD GOLD XAUUSD GOLD XAUUSD GOLD XAUUSD GOLD XAUUSD
This hawkish tone dampened market expectations for a significant rate cut in September, keeping the dollar strong and weighing on gold.
Meanwhile, optimism about a possible easing of geopolitical tensions further reduced safe-haven demand. Nevertheless, some uncertainty persists, limiting gold's downside.
Market participants will be looking to the upcoming global manufacturing and services PMIs for fresh clues about the health of the global economy. Additionally, the weekly US initial jobless claims data and the Philadelphia Fed manufacturing index could also lead to short-term volatility.
More closely watched is Fed Chairman Powell's speech at the Jackson Hole symposium on Friday. Investors are looking for clues about the future path of monetary policy, which will directly determine the medium-term direction of the dollar and gold.
The daily chart shows that gold is finding support at its 100-day moving average ($3,312-3,311), holding near the lower end of its three-month range. A break below this support could trigger further technical selling, pushing gold prices towards $3,300 or even the key levels of $3,270-3,265.
A break above this range would signal the formation of a gold top, increasing short-term downside risk. Conversely, a sustained break above the intraday high near $3,352 could trigger short-covering, with upside targets at $3,375, $3,400, and the strong resistance zone of $3,434-3,435, which also marks the top of the medium-term range.
Gold is currently caught in a volatile market: on the one hand, US economic data and the Federal Reserve's hawkish stance are supporting the dollar and weakening gold prices; on the other hand, market concerns about an economic slowdown and potential risks continue to provide some safe-haven demand.
In the short term, gold prices will closely follow the US dollar and Fed policy expectations, and Powell’s speech at Jackson Hole may become a key catalyst to break the volatile pattern.
XAUUSD GOLD XAUUSD GOLD XAUUSD GOLD XAUUSD GOLD XAUUSD 
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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.