GOLD FORECAST: JACKSON HOLE TO SPUR XAU/USD PRICE VOLATILITYGold challenges its 100-day transferring common, descending trendline forward of Jacks
GOLD FORECAST: JACKSON HOLE TO SPUR XAU/USD PRICE VOLATILITY
- Gold challenges its 100-day transferring common, descending trendline forward of Jackson Gap
- XAU/USD value motion is primed for volatility resulting from Fed symposium occasion threat that looms
- Gold, silver costs might leap greater if FOMC officers keep cautious and kick the taper can
Treasured metals have staged spectacular rallies over latest buying and selling classes. Gold and silver commerce about 8% greater off their respective flash crash lows notched earlier this month. This appears largely pushed by a softer US Greenback and higher chance that the Fed delays its taper timeline announcement.
XAU/USD value motion would possibly wrestle to increase its advance within the short-term, nonetheless, as markets search extra readability on when FOMC officers would possibly determine to start out tapering asset purchases. Such readability stands to be offered by Fed Chair Powell and his scheduled speech on the annual Jackson Gap Symposium this Friday, 27 August at 14:00 GMT.
XAU/USD – GOLD PRICE CHART: DAILY TIME FRAME (24 MARCH TO 24 AUGUST 2021)
Chart by @RichDvorakFX created utilizing TradingView
Nearside technical resistance has potential to maintain gold bulls at bay as effectively. Gold value motion would possibly face downward stress from its descending trendline highlighted on the chart above. To not point out, XAU/USD can also be difficult the underbelly of its 100-day easy transferring common. The 100-day easy transferring common has served as a proverbial ‘line within the sand’ for gold with momentum wanting bullish above this technical indicator and bearish under it.
As such, reclaiming the 100-day easy transferring common, mixed with affirmation of a breakout above resistance on the $1,830-price stage, would probably function a really constructive improvement for the gold bull thesis. That will deliver all-time highs again into focus, although the psychological $1,900-handle does stand out as a noteworthy impediment with potential to stymie rallies. From a elementary perspective, bullish situations might be catalyzed by FOMC officers sticking to a cautious script and never giving a taper timeline announcement on the Jackson Gap Symposium.
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— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market insight
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