XAU/USD Bulls Remain Hopeful While Above $1792

1. XAU/USD Bulls Remain Hopeful
While Above $1792

2. Points To Be Covered Today:
• XAU/USD To Face Stubborn Resistance At The $1800/34 Zone
• Gold Price Drops & US Dollar Bounce
• Gold Downside Appears
• Gold Price: Key Levels To Watch
• Here Is How It Looks On The Tool
• The US Dollar Index (DXY)
• The US 10-year Treasury Yields
• Gold Price & Chart

3. XAU/USD To Face Stubborn Resistance At The
$1800/34 Zone
• Gold has extended its defence of major support from the
lows for the year at $1682/71.
• However, the yellow metal recovery is expected to be
capped at a cluster of resistances at $1800/1834, according
to strategists at Credit Suisse.

4. Break Below $1671 To Mark An Important Change
Of Trend Lower
• “Strength though now faces a test of a cluster of resistances including its 55
and 200-day averages and July and August highs at $1800/1834 and we
expect this to cap the rebound and for the risk to lower again in the broader
range.”
• “Only below $1671 though would mark a major top to mark an important
change of trend lower. We would then see support at $1620/15 initially, then
$1565/60.”
• “Above $1834 would suggest a more important low may be in place, for a test
of the June high at $1917.”

5. Gold Price Drops & US Dollar Bounce
• Gold price drops as the US dollar attempts a bounce amid cautious mood.
• Treasury yields retreat ahead of the key Fed event this week.
• Gold to stay in consolidation ahead of Jackson Hole
• Gold price is pressurizing daily lows below $1800, as the US dollar is holding
onto its recent bounce across the board.
• The cautious tone on the global markets is keeping the haven demand for the
greenback underpinned while weighing on gold price.

6. Gold Downside Appears
• Gold’s downside appears limited by the latest retracement in the US
Treasury yields.
• Fading tapering expectations amid a surge in cases of the Delta
covid variant globally undermine the yields.
• Investors turn cautious ahead of the Fed’s Jackson Hole
Symposium, starting Thursday, with all eyes on Chair Jerome
Powell’s speech for fresh guidance on the central bank’s next policy
move.

7. Gold Price: Key Levels To Watch
• The Technical Confluences Detector shows that gold has bounced off fierce
support at $1792, which is the intersection of the SMA50 one-day, SMA5 one-
day and Fibonacci 61.8% one-month.
• The bright metal confronts a cluster of resistance levels around $1795-$1796
on its tepid recovery.
• That is the level where the SMA200 four-hour, the previous week’s high and
pivot point one-week R1 converge.

8. Gold Price: Key Levels To Watch - I
• If the reversal picks up traction, then the previous day’s low of $1801 could be back
on the buyers’ radar.
• The next powerful resistance awaits at the Fibonacci 38.2% one-day at $1805.
• On the flip side, a sustained break below the abovementioned key support at $1792
could initiate a fresh downswing towards $1786 levels, which is the Fibonacci 38.2%
one-week.
• Ahead of that cap, the $1790 demand area could come to the rescue of gold bulls.
• The last line of defense for the optimists is seen around the $1780 prize zone, the
meeting point of the SMA10 one-day and the Fibonacci 61.8% one-week.

9. Here Is How It Looks On The Tool

10. XAU/USD Slides Further Below $1,800 Mark Amid A
Modest USD Strength
• Gold drops for second consecutive day as firmer USD adds to the bearish
impulse.
• Market sentiment sours as virus woes escalate, mixed data raise concern
over Fed’s tapering ahead of Jackson Hole Symposium.
• DXY snaps three-day downtrend ahead of the data, risk catalysts are
important too.
• Gold extended the previous day's modest pullback from near three-week tops
and edged lower for the second consecutive session on Wednesday.

11. Key Factors Dollar-Denominated Commodities
• The retracement slide dragged the commodity back below the $1,800 mark
and was sponsored by a modest US dollar strength.
• The overnight goodish pickup in the US Treasury bond yields helped the USD
to stall its recent corrective fall from a nine-and-half-month top.
• Apart from this, expectations that the Fed could still begin rolling back its
pandemic-era stimulus in 2021 extended some support to the greenback.
• This, in turn, was seen as a key factor that acted as a headwind for dollar-
denominated commodities, including gold.

12. The Safe-Haven XAU/USD
• Apart from this, a generally positive tone around the equity markets further
undermined the safe-haven XAU/USD.
• The global risk sentiment got a lift after China said that it had stopped the
community spread of COVID-19, which restored confidence in the country's
growth dynamics for the rest of the year.
• Adding to this, the US Food and Drug Administration (FDA) granted full
approval to the Pfizer/BioNTech COVID-19 vaccine and further boosted
investors' appetite for riskier assets.

13. Impetus To Gold
• The downtick could further be attributed to some technical selling
following the overnight failure near the 100-day/200-day SMA
confluence hurdle near the $1,810-11 region.
• Market participants now look forward to the US economic docket,
highlighting the release of Durable Goods Orders.
• The data might influence the USD price dynamics and provide some
impetus to gold later during the early North American session.

14. Gold (XAU/USD) Holds The Lower Ground
• The key focus, however, remains on Fed Chair Jerome Powell's speech at the
Jackson Hole Symposium.
• Powell's remarks will be scrutinized for clues about the likely timing of the
Fed's tapering plan, which will play a key role in driving the greenback in the
near term.
• This, in turn, should assist investors to determine the next leg of a directional
move for the non-yielding gold.
• Gold (XAU/USD) holds the lower ground near $1,795, down 0.45% intraday,
during a two-day downtrend ahead of Wednesday’s European session.

15. The US Dollar Index (DXY)
• Although risk-on mood favored gold earlier during the previous day, mixed US data
and cautious sentiment ahead of the week’s key releases dragged the metal from a
three-week top the previous day.
• That said, the US Dollar Index (DXY) strength exerts an additional downside
pressure on the metal to mark a second consecutive daily loss.
• Softer US Richmond Fed Manufacturing Index data for August, 9 versus 25
expected, joins the first rise in the New Home Sales in four months to push back the
Fed’s tapering concerns as policymakers brace for Jackson Hole Symposium.
• The mixed data currently looks at the US Durable Goods Orders for July, forecast -
0.3% versus +0.9% prior, for further firming up odds favoring the need for easy
money policies.

16. The US Dollar Index (DXY) - I
• Also positive for the risk appetite was the US House of Representatives passed a
$3.5 trillion budget and is progressing on the $1.2 trillion infrastructure plan, which in
turn boosts the stimulus hopes.
• However, multi-day top of the US covid infections and a record high of daily virus
cases in Australia, not to forget fading vaccine optimism, weigh on the market
sentiment and heavy the gold prices.
• Furthermore, cautious mood ahead of the annual speech of Fed Chair Jerome
Powell at the Jackson Hole Symposium, on August 27, adds to the sluggish mood
and favors the commodity sellers.

17. The US 10-year Treasury Yields
• Amid these plays, the US 10-year Treasury yields stay firmer around 1.30%
after rising the most in two weeks the previous day, underpinning the USD
strength.
• Also favoring the greenback buyers, weighing on the gold’s quote, is mildly
offered US stock futures.
• Given the recently release mixed data from the US, gold bears look to the US
Durable Goods Orders for July, forecast -0.3% versus +0.9% prior, for further
firming up controls.
• However, the US preliminary Q2 GDP and Fed Chair Jerome Powell’s
speech the Jackson Hole becomes the key event of the week.

18. Gold Price

19. Gold Chart

20. XAU/USD Bulls Remain Hopeful
While Above $1792

21. Thanks for listening
XAU/USD Bulls Remain Hopeful While Above $1792