XAU/USD Consolidates In A Range, Just Above $1,800 Mark

1. XAU/USD Consolidates In A
Range, Just Above $1,800 Mark
Gold Price Forecast

2. Points To Be Covered Today:
• Gold Entered A Bullish Consolidation
• Gold (XAU/USD)
• The US Dollar Index (DXY)
• Gold Prices Remain On The Way
• Gold Analysis: Reaches Above 1,800
• Gold Futures: Room For Extra Gains

3. Gold Entered A Bullish Consolidation
• Gold eases from 13-day top, off intraday low at the latest.
• USD rebound, sluggish sentiment consolidate the heaviest daily jump in over
a week.
• US housing data, risk catalysts can entertain traders, Jackson Hole
Symposium is the key.
• Gold now seems to have entered a bullish consolidation phase and was seen
oscillating in a narrow trading band, near two-and-half-week tops touched on
Monday.

4. Gold Entered A Bullish Consolidation - I
• Currently hovering above the $1,800 mark, the risk-on impulse in the markets
turned out to be a key factor that acted as a headwind for the traditional safe-
haven XAU/USD.
• Investors drew comfort after the US Food and Drug Administration (FDA)
granted full approval to the Pfizer/BioNTech COVID-19 vaccine.
• This was evident from a generally positive tone around the equity markets and
reinforced by a modest uptick in the US Treasury bond yields, which further
capped the upside for the non-yielding gold.

5. Dollar-Denominated Commodity
• Meanwhile, worries that the fast-spreading Delta variant of the
coronavirus could derail the global economic recovery eased fears
about an imminent tapering of asset purchases by the Fed.
• This, in turn, dragged the US dollar further away from a nine-and-
half-month high touched on Friday and extended some support to
the dollar-denominated commodity.

6. Investors Also Seemed Reluctant
• Investors also seemed reluctant to place any aggressive bets, rather preferred
to wait on the sidelines ahead of the Fed Chair Jerome Powell's speech at the
Jackson Hole Symposium.
• Even from a technical perspective, the overnight positive move stalled just
ahead of the 100-day and 200-day SMA confluence hurdle.
• This makes it prudent to wait for some follow-through buying before traders
start positioning for any further appreciating move.

7. Gold (XAU/USD)
• Gold (XAU/USD) drops 0.17% intraday to $1,802 amid a quiet session ahead
of the European markets’ open on Tuesday.
• The yellow metal jumped the most since August 13 the previous day but lacks
the fundamentals to cross the sturdy barrier to the north.
• That said, the mixed news and a light calendar in Asia add to the gold’s slower
grind to the south.

8. Gold (XAU/USD) - I
• Among the lead leading factors challenging the market sentiment,
also underpinning the price pullback, is a lack of clarity over the
virus conditions and geopolitical concerns relating to Afghanistan
and China.
• Australia’s covid infections eased from the record top but New
Zealand Prime Minister Jacinda Ardern warns over the further
spreading of the Delta virus.

9. Gold (XAU/USD) - II
• On the same line, the UK’s daily hospitalizations jump to the
monthly top whereas figures from the US also push the Biden
administration to fasten the jabbing.
• Furthermore, was the US Food and Drug Administration’s full
approval of the COVID-19 vaccine developed by Pfizer and
BioNTech occupies the line of sentiment-positive catalysts.

10. Challenges For Gold Buyers
• On the contrary, the UK’s calling of the emergency videoconference of the
Group of Seven (G7) leaders to discuss the Taliban-related issues, as well as
hints that the US Securities and Exchange Commission (SEC) will increase
hardships for Beijing-based companies’ listing challenge gold buyers.
• Additionally, chatters surrounding Beijing’s crackdown on technology shares,
Sino-American tussles and fears of slowing economic recovery, perceived
from early indirection, of China adds barriers to the gold’s upside.

11. The US Dollar Index (DXY)
• Against this backdrop, the US 10-year Treasury yields gain one basis point to
1.26% whereas the S&P 500 Futures remain mildly bid at the latest.
• Also, the US Dollar Index (DXY) consolidates the heaviest daily losses in
two months around 93.00, by the press time.
• Given the light calendar ahead of the speeches from the Jackson Hole
Symposium, gold prices may rely on second-tier factors like US data and
geopolitics for fresh impulse.
• However, covid updates and vaccine news gain a little more importance.

12. The Bullish MACD Signals
• A three-month-old descending trend line challenges short-term gold upside
around $1,806.
• However, sustained trading beyond the horizontal area comprising the late
June lows, around $1,752-55, coupled with the bullish MACD signals, keep
gold buyers hopeful.
• In addition to the stated resistance line, 100 and 200-DMAs around $1,810-12
also challenge the gold bulls, a break of which will underpin the rally to the
mid-July highs close to $1,835.

13. Gold Prices Remain On The Way To Recovery
• Meanwhile, the $1,800 threshold and the latest swing lows around $1,775 can
entertain gold sellers during further weakness, ahead of $1,755-52 support.
• Though, a clear downside break of $1,752, also breaking the $1,750 round
figure, will aim for the monthly low of around $1,688. During the fall, the
$1,800 round figure may offer an intermediate halt.
• Overall, gold prices remain on the way to recovery but await a strong
fundamental to cross the key hurdles.

14. Gold Prices Remain On The Way To Recovery - I

15. Gold Analysis: Reaches Above 1,800
• The yellow metal passed the resistance zone below the 1,795.00
level in a sharp move upwards.
• During the surge, the rate passed the 1,800.00 mark and confirmed
the 1,795.00 level as support.
• Since the surge at mid-day on Monday, the commodity price has
been trading sideways around the 1,805.00 level.

16. Gold Analysis: Reaches Above 1,800 - I
• In the case of a surge, the commodity price could reach for
the August and July high level zone at 1,830.00/1,835.00.
• On the other hand, a potential decline could look for support
in the 1,795.00 level and the 55 and 100-hour simple moving
averages near 1,790.00.

17. Gold Futures: Room For Extra Gains
• Open interest in gold futures markets extended the uptrend in place
since August 12 and rose by early 9K contracts on Monday.
• According to flash data from CME Group.
• In the same line, volume went up by around 51.8K contracts,
offsetting the previous drop.

18. Gold Futures: Room For Extra Gains- I
• Monday’s decent advance in gold prices was on the back of
rising open interest and volume.
• It opens the door to further upside in the very near term.
• That said, the next target now emerges at the critical 200-
day SMA, today at $1,810.

19. Gold Futures: Room For Extra Gains- II

20. XAU/USD Consolidates In A
Range, Just Above $1,800 Mark
Gold Price Forecast

21. Thanks for listening
XAU/USD Consolidates In A Range, Just Above $1,800 Mark