Gold bulls are encouraged by a stronger US dollar ahead of Fed Chair Powell’s speech.

Gold price (XAUUSD) retreats from a fortnightly high while retaining the first weekly gains so far. Ahead of top-tier central bankers’ Jackson Hole Symposium talks.

As a result, the shiny metal is bearing the weight of lately increased US Treasury bond rates and the US Dollar. The weekly drop, however, may be linked to a weekly retreat in bond coupons. After they reached the multi-year high on Tuesday.

Nonetheless, optimistic aspects of US Durable Goods Orders forJuly and better mid-tier activity statistics. As well as employment hints, allowing the Fed’s second-ranking policymakers to justify hawkish monetary policy and boost the US Dollar.

Confirmation of a policy turn by major central banks, along with China-linked confidence, might propel gold price gains.

However, the early-week release of August PMIs and the buoyant atmosphere around US-China relations, not to mention predictions of additional Chinese stimulus, placed a floor under the XAUUSD values.

Furthermore, the BRICS send conflicting signals about dedollarization. And prod gold purchasers ahead of the top-tier event.

However, the Gold Price stays stronger above the $1,900 support confluence. Suggesting that policymakers’ signals for the conclusion of the hawkish cycle may allow purchasers to return to the table. Among the central bankers are European Central Bank (ECB) President Christine Lagarde. And Chairman of the Federal Reserve (Fed), Jerome Powell, has received a lot of attention.

Gold Technical Outlook

According to our Technical indicator, the Gold Price remains well above the short-term crucial support of roughly $1,897. Which includes the Fibonacci 38.2% on a one-week basis.

The convergence of the 5-DMA and the previous monthly low. Around $1,905, is also placing a sturdy floor beneath the XAUUSD price.

It’s worth mentioning that Fibonacci 161.8% on one-day and 61.8% on one-week joins. Pivot Point one-day S2 to lend support to the $1,905 level.

Meanwhile, the Fibonacci 61.8% on one-day, the middle band of the Bollinger Bands on one-hour. And the previous weekly high all work together to limit the Gold Price’s immediate upside at $1,920.

If the bulls manage to break beyond the $1,920 barrier. A run-up to the Fibonacci 161.8% on one-week, Pivot Point one-day R3 and 200-SMA on four-hour, close to $1,937, cannot be ruled out.

Despite the recent dip, gold buyers remain in control of the market over $1,900. It all relies on how convincingly central bankers defend their dovish stance.