Gold buyers are cautious ahead of top-tier US employment and inflation indicators.
Gold Price (XAUUSD) remained volatile after reversing the bearish trend with the first positive weekly closing in five weeks. The Yellow Metal’s current inactivity might be attributed to market jitters. Ahead of this week’s key US inflation and jobs data. As a result, XAUUSD is underwhelmed by the recent drop in US Treasury bond rates. And the US Dollar, as well as China-linked confidence in Asia.
Aside from the pre data trepidation, the Gold Price is also burdened by the contradictory messages from. US Federal Reserve (Fed) officials at the annual Jackson Hole Symposium. However, at last week’s crucial event. The majority of Fed members supported tight monetary policies while failing to urge more rate rises and highlighting the data-dependency. For future movements, implying that Fed hawks are running out of steam.
The combination of China-inspired confidence, a drop in US Treasury bond rates, and the US dollar put a floor under the XAU price.
Elsewhere, China unveiled another move to boost economic activity. But conflicting concerns about US-China trade ties and fears of a weaker recovery in one of the world’s largest economies remained. The XAUUSD bulls are propelled by the largest Gold clients.
Moving on, gold dealers will be watching this week’s China activity statistics. And the Sino-American discussions in Beijing for clear direction. The Federal Reserve’s (Fed) preferred inflation indicator. The Core Personal Consumption Expenditure (PCE) Price Index for July. And monthly employment statistics for August will also be noteworthy.
Key levels to monitor for the gold price
Our Technical levels indicates that the gold price is stronger above the $1,910 major support. Despite recent buyer reluctance. Nonetheless, the indicated support the 5 DMA, Fibonacci 23.6% on one day and 38.2% on one-week, as well as the lower Bollinger band on the hours timeframe.
Prior to then, the middleThe Bollinger band on the four hour chart combines the Fibonacci 61.8% one-day. And 23.6% one-week to limit immediate XAUUSD fall at $1,915.
It’s worth noting that the previous monthly low and bottom line of a Bollinger indicator on the four-hour chart. Which was recently close to $1,903, was immediately followed by the $1,900 barrier, which serves as the final line of defense for Gold buyers.
Meanwhile, a confluence of the previous weekly high and Pivot Point one-day R1, close to $1,923-24, protects the Gold Price’s quick rebound.
The 50-day moving average then joins the Pivot Point one day R2 and one week R1 to suggest $1,933 as the primary obstacle for XAUUSD bulls.
Finally, the $1,935 36 zone, which includes the four hour 200 SMA and Fibonacci levels, was reached. A one month gain of 61.8% might put Gold buyer to the test before handing up control.
