Gold Price Outlook: XAU/USD Mired by Fed Symposium Risk

GOLD FORECAST: JACKSON HOLE TO SPUR XAU/USD PRICE VOLATILITY

Precious metals have staged impressive rallies over recent trading sessions. Gold and silver trade about 8% higher off their respective flash crash lows notched earlier this month. This seems largely driven by a softer US Dollar and greater likelihood that the Fed delays its taper timeline announcement.

XAU/USD price action might struggle to extend its advance in the short-term, however, as markets seek more clarity on when FOMC officials might decide to start tapering asset purchases. Such clarity stands to be provided by Fed Chair Powell and his scheduled speech at the annual Jackson Hole Symposium this Friday, 27 August at 14:00 GMT.

XAU/USD – GOLD PRICE CHART: DAILY TIME FRAME (24 MARCH TO 24 AUGUST 2021)

Chart by @RichDvorakFX created using TradingView

Nearside technical resistance has potential to keep gold bulls at bay as well. Gold price action might face downward pressure from its descending trendline highlighted on the chart above. Not to mention, XAU/USD is also challenging the underbelly of its 100-day simple moving average. The 100-day simple moving average has served as a proverbial ‘line in the sand’ for gold with momentum looking bullish above this technical indicator and bearish below it.

As such, reclaiming the 100-day simple moving average, combined with confirmation of a breakout above resistance at the $1,830-price level, would likely serve as a very constructive development for the gold bull thesis. That may bring all-time highs back into focus, though the psychological $1,900-handle does stand out as a noteworthy obstacle with potential to stymie rallies. From a fundamental perspective, bullish scenarios could be catalyzed by FOMC officials sticking to a cautious script and not giving a taper timeline announcement at the Jackson Hole Symposium.

— Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

This content was originally published here.

Rate:

0 out of 5 stars(0 ratings)

Subscribe to Our Newsletter

money for gold logo

Learn About Buying and Selling Gold for the Best Prices

Get the latest news and expert advice on Gold!

We don’t spam! Read our privacy policy for more info.

Leave a Reply

Related

Gold Price Forecast: XAU/USD Slides Back to Recent Support

Key Talking Points:XAU/USD Daily chartThe August reading for US CPI has suggested that inflation may have well peaked,…

Read more
Gold Price Forecast: XAU/USD edges higher on weaker USD, hawkish Fed/risk-on to cap gains

Update: Gold attracted some dip-buying near the $1,760 region on Thursday and for now, seems to have stalled the…

Read more

Get FREE Access to Daily Price Action When You Open and Fund an Account With Blueberry Markets!This content was…

Read more

Share Great Content for Our Resource Section

About

MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.

Have a question or comment? Email us at: contact@moneyforgold.com

Navigation
MoneyForGold.com