GOLD PRICE FORECAST: XAU/USD FLOATS ABOVE $1,910 SUPPORT, FOCUS ON CHINA, US DATA – CONFLUENCE DETECTOR
- Gold Price stays defensive above the key support confluence after snapping four-week downtrend.
- Cautious mood ahead of top-tier US employment, inflation clues prod XAU/USD buyers.
- China-inspired optimism, pullback in US Treasury bond yields, US Dollar put a floor under the Gold Price.
- US Core PCE Price Index, NFP will be the key after Fed policymakers highlight data dependency.
Gold Price (XAU/USD) remains dicey after pushing back the bearish bias with the first positive weekly close in five. The Yellow Metal’s latest inaction could be linked to the market’s anxiety ahead of this week’s top-tier US inflation and employment clues. In doing so, the XAU/USD fails to cheer the latest retreat in the US Treasury bond yields and the US Dollar, as well as China-linked optimism in Asia.
Apart from the pre-data caution, the Gold Price also bears the burden of the mixed statements from the US Federal Reserve (Fed) officials at the annual Jackson Hole Symposium. That said, major of the Fed officials defended restrictive monetary policies at last week’s key event but failed to suggest more rate hikes and also highlighted the data-dependency for future moves, which in turn suggests that Fed hawks are running out of steam.
Elsewhere, China announced one more measure to bolster economic activities but the mixed concerns about the US-China trade ties and fears of slower recovery in one of the world’s biggest Gold customers prod the XAU/USD bulls.
Moving on, this week’s China activity data and the Sino-American talks in Beijing will be crucial to watch for the Gold traders for clear directions. Also important will be the Federal Reserve’s (Fed) favorite inflation gauge, namely the Core Personal Consumption Expenditure (PCE) Price Index for July, and the monthly employment data for August
- Gold Price stays defensive above the key support confluence after snapping four-week downtrend.
- Cautious mood ahead of top-tier US employment, inflation clues prod XAU/USD buyers.
- China-inspired optimism, pullback in US Treasury bond yields, US Dollar put a floor under the Gold Price.
- US Core PCE Price Index, NFP will be the key after Fed policymakers highlight data dependency.
Gold Price (XAU/USD) remains dicey after pushing back the bearish bias with the first positive weekly close in five. The Yellow Metal’s latest inaction could be linked to the market’s anxiety ahead of this week’s top-tier US inflation and employment clues. In doing so, the XAU/USD fails to cheer the latest retreat in the US Treasury bond yields and the US Dollar, as well as China-linked optimism in Asia.
Apart from the pre-data caution, the Gold Price also bears the burden of the mixed statements from the US Federal Reserve (Fed) officials at the annual Jackson Hole Symposium. That said, major of the Fed officials defended restrictive monetary policies at last week’s key event but failed to suggest more rate hikes and also highlighted the data-dependency for future moves, which in turn suggests that Fed hawks are running out of steam.
Elsewhere, China announced one more measure to bolster economic activities but the mixed concerns about the US-China trade ties and fears of slower recovery in one of the world’s biggest Gold customers prod the XAU/USD bulls.
Moving on, this week’s China activity data and the Sino-American talks in Beijing will be crucial to watch for the Gold traders for clear directions. Also important will be the Federal Reserve’s (Fed) favorite inflation gauge, namely the Core Personal Consumption Expenditure (PCE) Price Index for July, and the monthly employment data for August
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