Profit-Taking Pressures Gold, DXY Rebounds
Gold (XAU/USD) weakened in the Asian session on Thursday (August 28th), retreating from a three-week high near $3,400 due to a rebound in the US dollar and profit-taking. Concerns over the Fed's independence following the dismissal of Governor Lisa Cook by US President Donald Trump remain a risk-off backdrop, maintaining hedging interest in gold as a safe-haven asset.
The near-term focus is on the release of the second estimate of US second-quarter GDP, which is expected to grow 3.1% (annualized). A figure above forecasts could strengthen the US dollar and yields, thus pressuring gold prices. Conversely, weaker data could weaken the US dollar and provide room for recovery for the precious metal.
On Friday, attention shifts to US core PCE inflation as a clue to the direction of Fed policy. If core PCE slows below expectations, the market could increase bets on an interest rate cut, adding support to gold. However, a sticky PCE is likely to limit upside, as market participants reassess the pace and depth of easing.
Technically, the $3,380 area serves as an intraday pivot; A close above this level opens the door to a test of $3,400–$3,415, while failure to hold above this level brings the focus back to support at $3,355 and then $3,340. For directional confirmation, monitor the DXY, the 10-year US real yield, and gold-backed ETF inflows/outflows after the data release. (ayu)
Source: Newsmaker.id
