Gold prices are struggling to break above $1800 as the US dollar strengthens on concerns about the Delta variant slowing economic recovery. This week's Jackson Hole symposium could provide insight into the Fed's tapering plans, influencing dollar and gold movement. Technically, gold is in a descending channel and faces resistance at $1810 from the 200-day moving average. Bulls aim to push past $1811 initially while bears target support at $1780. Fundamentally, gold rose over 1% as the dollar weakened, with prices around $1803 supported by improving risk sentiment.

1. Gold Technical Analysis:
Still Trying To Top $1800

2. Points To Be Covered Today:
• Gold Bulls
• Global Finance Market & Gold Market
• Gold Is Affected By Slowing Stock Market
• Technical Analysis Of Gold Prices
• Price Of Gold Is Trading
• Gold Technical Overview
• Gold Fundamental Overview
• XAUUSD Chart

3. Gold Bulls
• Gold bulls are waiting for a decline in the US
dollar to shoot past the psychological resistance
of $1800.
• The USD is strengthening due to the Delta variant
posing a direct danger to global economic
recovery, in contrast to the optimism since the
beginning of the year.

4. Global Finance Market & Gold Market
• This week will see the Jackson Hole symposium, which
will likely determine direction for the US dollar and
therefore the gold market.
• This event will indicate the future of the Federal
Reserve's tightening policy.
• Strong movements will occur in the global financial
markets in general and the gold market in particular.

5. Gold Is Affected By Slowing Stock Market
• On the economic side, gold is affected by slowing stock
market activity due to the delta variant and closing of
the second quarter earnings season.
• However, US economic data last week brought back
some optimism in the dollar, which pushed gold lower
against the US dollar.

6. US Initials
• According to official figures, the US initial jobless claims for the week
ending August 13th exceeded the expected number of claims at
363K with the announcement of 348K.
• However, continuing claims came in higher than expected at 2.82
million versus 2.80 million.
• On the other hand, the Philadelphia Fed Manufacturing Survey for
the month of August forecast a reading of 23 with a record of 19.4.
• Also, US building permits for June beat expectations while housing
starts came in below estimates.
• On the other hand, US retail sales for July missed expectations on
all fronts.

7. US Initials - I
• Fund managers are not expecting much volatility this
month as investors will have little data to sway.
• August also tends to be a popular time for investors to
go on holiday, so trading volume usually decreases.
• September tends to be a more volatile month once Wall
Street gets back to work.

8. Fed Might Do About Inflation
• However, this week may provide Wall Street with more
insight into what the Fed might do about inflation.
• Last week, minutes from the Federal Reserve's latest
meeting showed that officials discussed scaling back the
central bank's bond-buying program later this year to begin
winding down some of the emergency measures
implemented during the pandemic.
• But they didn't get to set a fixed timetable for working on it.

9. Technical Analysis Of Gold Prices
• In the near term and according to the performance of the hourly
chart, it appears that gold is trading within the formation of a
descending channel.
• This indicates a slight short-term bearish momentum in the market
sentiment.
• The gold price has now broken below the 100-hour moving average.
• Therefore, the bears will look to extend the current downside move
towards $1,771 or below to the $1,759 support level.
• On the other hand, the bulls will target potential bounces around
$1,790 or higher at $1,802 an ounce.

10. Price Of Gold Is Trading
• In the long term, and according to the performance on
the daily chart.
• It appears that the price of gold is trading within the
formation of a descending channel.
• The yellow metal has recently bounced off its current
yearly lows around $1,677.
• This indicates that the bulls are trying to regain control.

11. Price Of Gold Is Trading - I
• Therefore, they will target earnings for an extended
recovery around $1,811 or higher at $1,842 an ounce.
• On the other hand, the bears will target long-term profits
at around $1,745 or lower at $1,709 an ounce.
• The price of gold today will be affected by the level of
the US dollar, the level of risk appetite, and the reaction
of investors to the PMI readings for global economies.

12. Gold Vs US Dollar

13. Gold Technical Overview
• With this recent upsurge, gold is now trading above both the 20-day
and the 50-day SMAs.
• Additionally, the Relative Strength Index (RSI) indicator on the
daily chart turned north, suggesting that the bullish momentum is
gathering strength.
• On the upside, the 200-day SMA is forming strong resistance at
$1,810.

14. Gold Technical Overview - I
• Moreover, the 100-day SMA is also floating around that level,
reinforcing that hurdle.
• A daily close above that area could open the door for additional
gains toward the next static resistance at $1,830 and $1,845.
• On the other hand, $1,800 (psychological level) aligns as the first
support ahead of $1,790/85 (20-day SMA, 50-day SMA) and $1,780
(static level).

15. Gold Technical Overview - II

16. Gold Fundamental Overview
• The XAU/USD pair fluctuated in a relatively tight range last week and struggled to
make a decisive move in either direction.
• With the greenback coming under strong selling pressure at the start of the week,
gold managed to break out of its horizontal range and touched its highest level in
more than two weeks at $1,804.
• As of writing, XAU/USD was up 1.25% on the day at $1,803.
• In the absence of high-tier macroeconomic data releases, improving market
sentiment seems to be making it difficult for the USD to find demand.
• Reflecting the broad-based USD weakness, the US Dollar Index, which gained 1%
last week, is down 0.32% on the day at 93.15.

17. Gold Fundamental Overview - I
• Earlier in the day, the only data from the US revealed that the Federal
Reserve Bank of Chicago's National Activity Index improved to 0.53 in July
from -0.01.
• Later in the session, the IHS Markit's preliminary Manufacturing and
Services PMI reports will be featured in the US economic docket alongside
July Existing Home Sales.
• In the meantime, Wall Street's main indexes remain on track to start the day in
the positive territory, suggesting that risk flows will continue to dominate the
financial markets in the second half of the day.

18. Gold Fundamental Overview - II

19. XAUUSD Chart

20. Gold Technical Analysis:
Still Trying To Top $1800

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Gold Technical Analysis: Still Trying To Top $1800