XAUUSD – Resting, Waiting for New Factors
Last week, in addition to weekly key economic data, the US reported its second forecast for second-quarter GDP, expected to be 6.7%, above the 6.3% (revised from 6.5%) reported in the first read A key event this week is the August 26-28 Jackson Hole meeting, with Fed Chairman Powell expected to speak on the economic outlook on Friday, August 27, 14:00 GMT.
In the past week Gold prices moved sideways amid concerns over the delta virus outbreak and the return of the US Dollar. Even though the Dollar weakened on Friday it was still unable to push the gold price up. However, the sideways gold prices are correlated with the US 10-year Treasury yield hovering in the 1.27% zone, which may be awaiting new factors or data to shake the market again.
Gold prices this week turned positive on the US dollar’s weakening, with 1,800 remaining as a key bullish target which may also become a major selling point in the short term. Although the direction of the gold price is unclear due to weak trading pressure In both the H1 and H4 timeframes, as MACD narrows at the 0 line and RSI flattens at the 50 level, as long as MACD (both H1, H4) remains above 0 line, gold prices will continue to skew the upward trend. Today there is the first resistance at the MA200 line at 1,795 and the psychological number 1,800, while today’s key support is at the zone of 1,776 near the MA50 line.
The data on the economic calendar that may affect Gold prices for the rest of today include data from the US; flash PMI for both services and manufacturing (13:45 GMT) and existing home sales (14:00 GMT).
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