Gold Price Forecast: XAU/USD to move sideways ahead of Jackson Hole
|After edging higher toward $1,800 during the first half of the week, gold edged lower on Thursday and ended up closing the week virtually unchanged a little above $1,780. According to FXStreet’s Eren Sengezer, XAU/USD is set to stay in consolidation ahead of Jackson Hole.
Investors’ focus shifts to Powell’s speech at Jackson Hole Symposium
“On Friday, FOMC Chairman Jerome Powell will deliver his prepared speech at the Jackson Hole Symposium at 14:00 GMT. In case Powell adopts a cautious tone and reassures markets that the dovish outlook will remain intact for the rest of the year, the USD could come under strong bearish pressure and fuel a rally in XAU/USD. On the other hand, the pair’s downside could remain limited even if Powell refrains from changing the perception on the policy outlook.”
“Interim resistance seems to have formed at the $1,790/93 area (static level, 50-day SMA). A daily close above this level could open the door for additional gains toward $1,800 (psychological level) and $1,810 (100-day SMA, 200-day SMA).”
“Static supports are located at $1,770, $1,760 and $1,750. Among these levels, the second one seems to be particularly significant with gold having suffered heavy losses the last time it broke below it on August 9.”
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