Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst
Gold spot prices (XAUUSD) rallied to regain the $1900 per ounce price level in early European trading, benefitting from a softer US Dollar Index and a pause in US Treasury Yields. Despite the 10-year US Treasury hitting levels not seen since 2007, the Dollar’s inability to capitalize on this strength is attributed to technical factors and the looming Jackson Hole Symposium.
Amidst the ongoing tug-of-war between risk-on and risk-off sentiment, China’s role in the market remains influential. Wall Street’s recent gains and a moderate rate cut in China contributed to a slight uptick in sentiment. The focus now shifts to a slew of Fed policymakers’ speeches, potentially bringing volatility as their tone is awaited post-FOMC minutes.
Gold’s recent attempts to stabilize are mirrored by sentiment fluctuations across global trading sessions. The impending Jackson Hole event, with appearances by ECB President Christine Lagarde and Fed Chair Jerome Powell, has the market poised for further insights on interest rate trajectories.
Technische Analyse
The 4H chart shows that gold’s price hovers around $1,902.63/ounce, positioned in proximity to the 50-EMA at $1,903.05/ounce following a breakout from a descending channel trading pattern, suggesting potential shifts in sentiment. The present situation places gold beneath the downward-sloping 200-EMA (orange line) while resting on the relatively flat 50-EMA. This mixed moving average configuration signals a degree of uncertainty in the market’s direction.
Accompanied by declining volume, the rising RSI at 59.73 indicates potential upward momentum, supported by the RSI-based moving average at 43.74. Therefore, a sustained push above the 50-EMA could offer short-term trading prospects towards the $1,910.88/ounce resistance level. Furthermore, breaching this level might pave the way for additional opportunities at the $1,928.68/ounce resistance, reinforced by the 200-EMA.
However, failure to sustain the push higher would leave the potential for a pullback within the channel firmly in play, with the breakout level at $1,894.64/ounce likely acting as a level of interest. A break below the level would leave the $1,884.90/ounce and $1,869.41/ounce support levels within the bears’ reach in the short term.
Zusammenfassung
The gold spots enjoyed a rare bullish session on Tuesday as the greenback slumped ahead of the highly anticipated Jackson Hole meeting later this week, leaving the 50-EMA as the level of significance in the short term.
A break above the level would bring the $1,910.88/ounce price level into play, while failure to sustain a break above the level would leave the $1,884.90/ounce within the bears’ reach in the short term.
Quellen: TradingView, Trading Economics, Reuters, CNBC.
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