GOLD PRICE VIEWS:
- Gold prices was at about $ 1,785 over the past week, waiting for fresh catalysts
- Precious metals traders are closely following the Jackson Hole Symposium for clues to Fed’s narrowing timeline
- Exceeding more than $ 1,785 can open the door to further profits, while withdrawal can focus on $ 1,750
Gold during Monday A remained constantPAC session than bullion traders expected Jackson Hole Symposium later this week. The last one FOMC meeting minutes indicated that most Fed members support the idea of cutting $ 120 billion a month in reserve purchases by the end of this year. Friday’s speech by Fed chairman Jerome Powell could reinforce that prospect, though recent economic data has shown signs of slowing recovery.
Against this background is DXY US dollar index reached an eight-month high as market participants tried to bring in a price tightened liquidity conditions towards the end of the year. As a result, gold prices were strongly resisted by rising geopolitical tensions during the year Afghanistan.
Gold price vs US dollar index – The past 12 months
Source: Bloomberg, DailyFX
Looking to the future, traders look to Friday USAPCE core inflation data on indications of price increases and their consequences for Fed policy. This figure is expected to reach 3.54% in July, the highest level since 1992. A stronger-than-expected figure may strengthen the outlook for the outage and consider gold prices, but a weaker one may lead to the opposite.
Technically, gold prices begin to challenge iintermediate resistance level at 1785 – 61.8% fibonacci retracement. Failed to infringe 1,785 may lead to the return of immediate support to the 1750s. MACD indicator is beginning to take shape bullish crossover, suggesting that the uptrend may be building.
Gold – daily schedule
– Wrote DailyFX.com strategist Margaret Yang
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