Gold prices consolidated just above the $1,800 mark as the metal entered a bullish consolidation phase, oscillating in a narrow trading band near two-and-a-half week highs. Sentiment was mixed as the US FDA approval of the Pfizer vaccine boosted risk appetite, capping gold's upside, while Delta variant concerns eased fears of a Fed tapering. Investors were also reluctant to take positions ahead of the Jackson Hole Symposium. Technical indicators signaled room for further gold gains if it can break above key hurdles like the 100-day and 200-day SMAs at $1,810-12.

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