Gold To Stay In Consolidation Ahead Of Jackson Hole

1. Gold To Stay In Consolidation Ahead
Of Jackson Hole

2. • Gold To Stay In Consolidation
• Non-Yielding Gold
• Impetus To Gold
• Gold Price Is Likely To Suffer
• Gold Prices Rose
• Gold's Next Upside Levels
• Gold Technical & Fundamental Overview
• Gold Price & Chart

3. Gold To Stay In Consolidation
• Gold price jumps on mixed cues, geopolitical risks.
• Treasury yields ease despite Fed’s hawkish view ahead of
Powell.
• Gold struggled to capitalize on its modest intraday gains
and has now retreated a bit from the daily swing highs,
around the $1,805 region.

4. Non-Yielding Gold
• Currently trading below the $1,800 mark, the underlying bullish sentiment in
the financial markets acted as a tailwind for the safe-haven XAU/USD.
• Apart from this, speculations that the Fed might still begin rolling back its
pandemic-era stimulus later this year capped the upside for the non-yielding
gold.
• The market speculations for an early move by the Fed were reinforced by St.
Louis Fed President James Bullard and Dallas Fed President Robert Kaplan's
hawkish comments on Thursday.

5. Impetus To Gold
• Meanwhile, a softer tone around the US Treasury bond yields kept the US
dollar bulls on the defensive.
• This, in turn, extended some support and should help limit any meaningful
slide for the dollar-denominated commodity.
• Investors also seemed reluctant to place any aggressive bets ahead of Fed
Chair Jerome Powell's highly-anticipated speech at the Jackson Hole
Symposium.
• Market participants will look for clues about the timing of the Fed's plans to
reduce the pace of massive bond purchases, which, in turn, provide some
meaningful impetus to gold.

6. A Technical Perspective
• Even from a technical perspective, bulls, so far, have struggled to make it
through the 100-day/200-day SMAs confluence hurdle, currently around the
$1,810 region.
• This should now act as a key pivotal point for short-term traders and help
determine the next leg of a directional move for gold.
• Well, the Fed speculation on monetary policy normalization has once again
turned in favor of the hawks heading into Chair Jerome Powell’s Jackson Hole
showdown.

7. Gold Price Is Likely To Suffer
• However, the Kabul airport bombing, escalating Delta covid variant
concerns and pre-Powell anxiety are keeping the sentiment around
safe-haven gold underpinned.
• It remains to be seen if Powell joins his colleagues James Bullard
and Robert Kaplan in calling for taper in the final quarter of this year.
• Gold price is likely to suffer on any hints on withdrawal of the
monetary policy support.

8. Gold Prices Rose
• Metals rose sharply after Powell’s speech amid a decline of the US
dollar and risk appetite.
• XAU/USD is testing the weekly top near $1810/oz.
• Gold prices rose more than $20 from the daily low, rising back to the
weekly top at $1809.
• The positive tone remains intact t despite the sharp rally that took
place during the last hour.

9. Gold Prices Rose - I
• The trigger of the rally was the speech from Fed’s Chair
Powell that sent the dollar to the downside.
• He mentioned the Fed could start scaling back its purchase
program this year, offering no specific timeline.
• He sees the surge in inflation fading over time.

10. XAU/USD Is Testing The Weekly Top
• XAU/USD is testing the weekly top around $1,809, and a break
higher would put prices at the strongest level in three weeks.
• The next resistance might be seen at around $1,816, and then
comes the July high of $1,834.
• The area around $1,800 and $1,795 is again the support to watch
in the short-term.

11. Gold's Next Upside Levels
• XAU/USD has jumped after Fed Chair Powell refrained from a clear taper
signal.
• The Confluence Detector is showing gold's next upside levels.
• This is what it sounds like when doves do not cry – Paraharasing Prince's
1984 hit, Federal Reserve Chair Jerome Powell has shown his dovish
feathers, sending gold above $1,800.
• Contrary to a long list of his hawkish colleagues, Powell, the man at the top,
refrained from committing to tapering the bank's $120 billion/month bond-
buying scheme soon.

12. Gold's Next Upside Levels - I
• While he acknowledged improvement in the labor market, his stance
on inflation was mixed and he expressed worries about covid.
• If the Fed continues printing dollars at a rapid clip, stock markets
and the precious metal have reasons to be cheerful.
• After the initial gold rush, how is XAU/USD positioned on the
charts?

13. Technical Confluences Detector
• The Technical Confluences Detector is showing that gold is battling near-term
resistance at around $1,800, which is a cluster including the Fibonacci 38.2% one-
month, the Bollinger Band 4h-Upper, the Pivot Point one-week Resistance 2, and
more.
• Bulls are eyeing higher levels, and $1,818 stands out. That is the convergence of
the Fibonacci 23.6% one-month, the PP one-day R3 and the PP one-week R3.
• Immediate support awaits at $1,805, which is where the BB 1h-Upper and BB
15min-Upper hit the price.
• The next significant cushion is at $1,796, which is the confluence of the previous
weekly high, the BB 4h-Middle and the Simple Moving Average 5-1h.

14. XAU/USD Resistance And Support Levels

15. Gold Technical Overview

16. Gold Fundamental Overview
• Gold prices rose more than $20 from the daily low, rising back to the weekly top at $1809.
• The positive tone remains intact t despite the sharp rally that took place during the last
hour.
• The trigger of the rally was the speech from Fed’s Chair Powell that sent the dollar to the
downside.
• He mentioned the Fed could start scaling back its purchase program this year, offering no
specific timeline.
• He sees the surge in inflation fading over time.
• The DXY fell to 92.66, the lowest in more than a week. Equity prices reacted to the upside.
• The Dow Jones is rising by 0.69% and the Nasdaq by 1.0%. US yields dropped, with the
10-year falling to 1.31%.

17. Gold Fundamental Overview - I

18. Gold Price

19. Gold Chart

20. Gold To Stay In Consolidation Ahead
Of Jackson Hole

21. Thanks for listening
Gold To Stay In Consolidation Ahead Of Jackson Hole