Gold Continues to Weaken Ahead of Powell
Gold (XAU/USD) continued its decline for a second day and held near the 100-day moving average (MA) support area, which was tested earlier this week. The technical bias remains negative, indicating that there is still room for short-term weakness.
The main pressure comes from the strengthening US dollar, as the chances of aggressive easing from the Fed diminish. Relatively strong yields make gold—a non-yielding asset—less attractive to investors.
Interestingly, the dollar remained solid even as the market increasingly accepted the scenario of an interest rate cut in September. Furthermore, the cautious mood ahead of Jerome Powell's speech at Jackson Hole did little to boost demand for safe-haven gold.
Market implications: As long as gold remains below its immediate resistance, downside risks remain dominant. Key levels to monitor: the 100-day moving average (a trigger for further weakness if broken), DXY/yield dynamics, and Powell's tone—dovishness could ease pressure, while hawkishness could potentially deepen the correction. (ayu)
Source: Newsmaker.id
