Gold Steady During Asian Session
Gold prices were stable during the Asian session on Monday (August 25th), driven by a strengthening US dollar, but Powell's dovish signals at Jackson Hole kept downside risks limited. Expectations of a Fed rate cut in September lowered the opportunity cost of holding gold, although Powell warned that inflationary pressures were still trending upward and the labor market was starting to weaken.
Meanwhile, Russia-Ukraine tensions added hedging power to gold. Going forward, the direction of XAU/USD is likely to be determined by US dollar dynamics and US inflation/employment data: a strong USD and rising yields limit upside, while the increasing probability of a rate cut and safe-haven flows have the potential to support prices.
The gold price at the time of writing was $3,366/Toz.
- Buy if the price moves within the $3,373 range
- Sell if the price moves within the $3,359 range
Resistance 2: $3,387
Resistance 1: $3,380
Support 1: $3,352
Support 2: $3,345
DISCLAIMER
Note: This article is for analytical purposes only and is not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id