Daily Price Outlook

The global market sentiment has been up and down recently. At the beginning of the week, things looked positive, but now on early Tuesday, people are becoming more cautious. Traders are trying to figure out if this positive feeling will last, especially because there isn't much important news today in Asia and not many big economic updates.

Currently, the S&P 500 Futures are not showing a clear direction and remains dicey around 4,445 points. This comes after a couple of days of gains. At the same time, the yield on the US 10-year Treasury bond, which is an important indicator of borrowing costs and market confidence, is staying around 4.19%.

Central Bankers' Challenges and Rate Hike Uncertainty

It's important to mention that central bankers worldwide are facing challenges due to mixed economic data and recession worries. Traders are paying close attention, especially after policymakers discussed their cautious strategies at the Jackson Hole Symposium last week. Jerome Powell, who leads the US Federal Reserve, is considering raising interest rates to control borrowing. However, decisions depend on the economy's performance, creating uncertainty. Another banker, Loretta Mester, suggests raising rates, possibly not immediately in September. Chances of rate increases in November have improved recently according to predictive tools.

Hence, this news has left market sentiment uncertain as central bankers grapple with mixed data and recession concerns. Traders are attentive due to potential rate hikes and economic uncertainties discussed at the Jackson Hole Symposium.

Market Impact: Trade Talks, IMF Meeting, and Economic Sentiment

Besides this, there's mixed news about US-China trade talks, and the IMF's leader plans to meet China's leaders. This is making people more cautious about taking risks in the market. China's effort to boost its economy by reducing stock trading costs aligns with the mood at the Jackson Hole Symposium, where no surprising economic decisions were made. As a result, the US dollar is slightly weaker versus other currencies. This news is making the market more cautious due to mixed US-China trade talk updates and the IMF's interest in China. China's economy-boosting move and uneventful Jackson Hole Symposium have slightly weakened the US dollar.

Looking forward, traders will focus on Germany's GfK Consumer Confidence Survey for September, followed by the US Conference Board's Consumer Confidence Index for August. More importantly, attention will be on the US Core Personal Consumption Expenditure Price Index for July and August's Nonfarm Payrolls. These indicators will play a significant role in shaping market trends.

S&P500 (SPX) - Technical Analysis

Upon examining the technical aspects of the S&P 500, it currently indicates fluctuations around the 4430 level. Analyzing the four-hour chart, the S&P 500 has rebounded from a significant support level of 4350. The manner in which the candles have closed suggests that the S&P 500 carries potential upside momentum.

It is nearing the 38.2% Fibonacci retracement level situated around 4440. Should the S&P 500 maintain its position above this level, it will likely encounter the next significant resistance at approximately 4475. Further upwards, another major resistance aligns with the 61.8% retracement level, amplified by a 61.8% extension. Conversely, if the S&P 500 drops below the 4400 level, subsequent support can be expected at 4450 and 4335.

The pivotal focus remains on the crucial support level of 4400, which is also today's pivot point. A stance above this level indicates a probable continuation of the bullish trend, while a position below may suggest further selling pressure.

Daily Price Outlook

Despite the expectations of another rate hike by the Federal Reserve in 2023 and the prevailing risk-on sentiment, the price of gold (XAU/USD) has continued its upward rally, commencing the new week on a bullish note, hovering around the $1,915 level. This upward trajectory in gold's value seems to be closely tied to the weakening US dollar, which has started the week on a more subdued trajectory, retracting from its peak level since early June. This, in turn, is viewed as a significant factor bolstering the price of gold. A weaker Greenback typically benefits US Dollar-denominated commodities, such as XAU/USD.

As of now, XAU/USD is trading around the $1,916 mark, with gains of slightly less than 0.10% for the day. However, it remains below the peak it reached two weeks ago, recorded last Thursday. Looking ahead, traders appear to be exercising caution and refraining from making substantial bids in anticipation of critical US macroeconomic releases scheduled for this week, with particular attention being given to the highly anticipated Non-Farm Payrolls (NFP) report set to be released on Friday.

Gold Prices Supported by Weaker Dollar, but Fed's Rate Hike Concerns Linger

The broad-based US dollar started the week on a weaker note, stepping back from its highest level since early June. This initially provided support for gold prices (XAU/USD), as commodities like gold often benefit from a weaker dollar. However, the confidence in the gold market is lessened by concerns regarding the Federal Reserve's intentions to raise interest rates as a measure to control inflation.

Fed Chair Jerome Powell recently made remarks at the Jackson Hole Symposium, suggesting that the Fed might consider raising interest rates soon. This has made investors cautious, as higher interest rates can make assets like bonds more appealing compared to gold, which does not offer interest yields.

The market is analyzing Powell's statements to imply a potential 25 basis points rate increase by the end of the year. This expectation is boosting US Treasury bond yields and, consequently, lending support to the US dollar. As a result, while the weaker dollar is providing some support to gold prices, the possibility of further interest rate hikes by the Federal Reserve is preventing traders from making substantial bullish bets on gold. They are awaiting further developments in the Fed's strategy and how it might impact the broader financial landscape before making significant moves in the gold market.

China's Measures and Market Sentiment Impact on Gold

Moreover, the risk-on sentiment, fueled by China's recent measures, could limit gains in gold prices. China announced a reduction in stamp duty on stock trading to boost its market and investor confidence. The levy on stock trades will decrease from 0.1% to 0.05% starting August 28, the first cut since 2008. This supports a positive tone in equity markets and might discourage bullish bets on XAU/USD.

Looking ahead, investors will closely monitor the gold market. With a quiet Monday in terms of significant US economic news, gold's performance will depend on the US dollar and market sentiment. Expect limited fluctuations until pivotal US data, especially the Non-Farm Payrolls report on Friday, is released.

GOLD (XAU/USD) - Technical analysis

Gold prices made an effort to surpass the $1913.15 mark, yet concluded last Friday's session above this threshold. This sustains our optimistic forecast, bolstered by the positive trajectory indicated by the stochastic, as well as the upward pressure provided by the EMA50. Our projected price milestones commence at $1929.00, extending up to $1945.20.

Conversely, it's pivotal to highlight that a dip below the $1913.15 mark could disrupt this bullish outlook, steering the price towards a renewed downtrend.

For today, the anticipated price fluctuation is predicted to oscillate between a support of $1900.00 and a resistance of $1935.00.

Daily Price Outlook

The AUD/USD currency pair managed to extend its gaining streak and remained well bid around 0.6420 marks. However the reason for its upward rally can be tied to the China rolled out new measures over the weekend to draw investors back into its battered stock markets, which, along with the better-than-expected domestic data, provided a modest lift to the Australian Dollar (AUD) on the first day of a new week. Apart from this, a positive tone around the equity markets drags the safe-haven US Dollar (USD) away from its highest level since early June touched on Friday and offers additional support to the AUD/USD pair.

China's Market Measures and Domestic Data Impact on AUD/USD Pair

Moreover, China introduced new measures over the weekend to attract investors back to its struggling stock markets. This, coupled with better-than-expected domestic data, gave a slight boost to the Australian Dollar (AUD) as the new week began. Notably, China's finance ministry announced a reduction in the stamp duty on stock trading from 0.1% to 0.05%, the first decrease since 2008. Apart from this, the Australian Bureau of Statistics (ABS) revealed a 0.5% rise in Retail Sales for July, surpassing the anticipated 0.3% increase and recovering from the previous month's 0.8% decline.

Consequently, this development holds the potential to positively influence the AUD/USD pair. China's market measures and the robust domestic data may enhance investor confidence in the Australian Dollar, potentially contributing to its strength against the US Dollar.

USD Trends, Fed Expectations, and the Impact on AUD/USD Pair

Moreover, the positive sentiment in the stock markets is pulling the safe-haven US Dollar (USD) down from its recent peak in early June, providing added support to the AUD/USD pair. However, the USD's decline is modest due to growing expectations of the Federal Reserve (Fed) tightening its policies.

Investors are anticipating another 25 basis points rate hike before the year ends, a view reinforced by Fed Chair Jerome Powell's hawkish comments at the Jackson Hole Symposium. Powell's statement indicated that the Fed might need to further raise rates to manage persistent inflation concerns.

Consequently, this situation could impact the AUD/USD pair. The upbeat equity market mood and the corrective USD dip might enhance the Australian Dollar's attractiveness, potentially causing it to gain strength against the US Dollar. Nevertheless, the USD's potential for more rate hikes could limit the AUD's gains.

AUD/USD - Technical analysis

The AUD/USD pair is demonstrating resilience around the 0.6400 juncture, initiating the session with an ascendant bias. It is attempting to distance itself from this benchmark, gearing up for a potential bullish surge with a tentative target in the vicinity of 0.6545.

Our analysis postulates a bullish orientation for today, corroborated by auspicious indications from the stochastic oscillator. Transcending the 0.6450 marker could further facilitate this upward trajectory. Conversely, any decline below the 0.6400 level might disrupt this bullish thesis, potentially reverting the pair to its prevailing bearish trend. For the day, we forecast a trading range delineated by a support level at 0.6380 and a resistance point at 0.6480.

Daily Price Outlook

Despite the European Central Bank's (ECB) adoption of a more hawkish stance, the EUR/USD pair is still struggling. While it initially managed to breach the 1.0800 level once again, it concluded the week in the red for the fifth consecutive time. This means that even though the ECB is adoption a hawkish stance, the Euro is not gaining much ground against other currencies.

However, the reason for its bearish trajectory can be attributed to the heightened expectations of another interest rate hike by the Federal Reserve in the year 2023. This development has pushed the US dollar higher, subsequently contributing to the losses observed in the EUR/USD pair.

ECB's Inflation Focus and Rate Hike Caution: Potential Impact on EUR/USD Pair

It is worth noting that during the Jackson Hole Symposium, ECB President Christine Lagarde emphasized their ongoing battle with inflation. She underlined the essential role of central banks in maintaining economic stability by keeping interest rates at elevated levels until the targeted 2% inflation rate is achieved. Simultaneously, ECB's Martins Kazaks cautioned against prematurely stopping rate hikes, emphasizing potential risks.

In simpler terms, the ECB is prioritizing the prevention of rapid price escalation, which is why they are opting to maintain higher interest rates for the time being. Thus, this news holds the potential to exert a positive influence on the EUR/USD pair.

Fed Chairman Powell Signals Potential Interest Rate Increase: Impact on EUR/USD Trend

Across the ocean at the Jackson Hole Economic Symposium, Fed Chairman Jerome Powell stated their readiness for more interest rate increases if needed. This stance, driven by strong growth and job conditions, could make the US dollar more attractive against the Euro, particularly if data remains positive. However, Philadelphia Fed President Patrick Harker disagreed, favoring stable rates to gauge their economic impact.

Meanwhile, Cleveland Fed President Loretta Mester supported higher rates to curb inflation, citing an improving economy. Furthermore, the UoM's Consumer Confidence Index dropped in August, potentially strengthening the US dollar further, as Powell's willingness to raise rates based on growth could enhance the dollar's appeal. This contributed to the EUR/USD pair's downward trend.

EUR/USD - Technical analysis

Daily Price Outlook

The USD/JPY currency pair has suceeded to extend its upward stance and risen to around 146.00 in early European trading, recovering from recent losses. However, this upward trend is partly due to mixed inflation data in Japan, which is keeping the Japanese Yen (JPY) under pressure. Furthermore, the JPY is facing concerns of immediate government intervention and a more dovish stance from the Bank of Japan (BoJ).

Apart from this, the USD/JPY pair has been boosted by strong US employment data, higher US Treasury yields, and uncertainty surrounding the US Federal Reserve's September policy tightening. These factors collectively contribute to the recent strength in the USD/JPY pair.

Tokyo's Lower-than-Expected Inflation and Its Impact on USD/JPY

According to recent data, consumer prices in Tokyo, Japan, rose less than anticipated in August. The Tokyo Consumer Price Index (CPI) grew by 2.9% annually, falling short of the expected 3.0% and down from 3.2% in the previous report. Meanwhile, Tokyo CPI ex Food, Energy (YoY) remained consistent at 4% whereas Tokyo CPI ex Fresh Food (YoY) declined to 2.8% against the market consensus of 2.9%. The index printed the 3% figure in July.

The lower-than-expected consumer price growth in Tokyo could weaken the Japanese yen. If inflation continues to lag, it may prompt the Bank of Japan to maintain its accommodative policies, potentially leading to a stronger USD/JPY pair as the US dollar gains relative strength.

Factors Pressuring Japanese Yen (JPY) and Impact on USD/JPY Pair

Moreover, the Japanese Yen remains under pressure due to the Bank of Japan's (BoJ) more cautious approach. The BoJ stands alone among central banks with its negative interest rates policy. Policymakers also stress the need for sustainable wage increases before they'll consider scaling back their substantial monetary support. These factors weigh on the USD/JPY pair, potentially favoring the US dollar.

USD Strength Spurs USD/JPY Pair Amid Fed and BoJ Influences

The broad-based US dollar regained its strength and rose sharply on the day. The US dollar, measured by the US Dollar Index (DXY), is currently around 104.20 before Fed Chair Powell’s speech. Meanwhile, the USD/JPY pair was also influenced by Bank of Japan (BoJ) Governor Kazuo Ueda’s upcoming speech at the Jackson Hole Symposium. Whereas, the strong US jobless claims data and mixed sentiment about US Federal Reserve policy support the USD/JPY rise. Plus, the pair benefits from higher US Treasury yields and concerns about China's economy affecting export ties with the US. This blend of factors contributes to the USD/JPY pair's recent strength.

USD/JPY - Technical analysis

The USD/JPY pair experienced a notable upward surge in the previous session, surpassing the 145.00 mark and currently reaching the 146.00 barrier. This movement has effectively halted the corrective bearish scenario, revitalizing the prospect of the primary bullish trend. The focus now shifts towards testing the recently established peak at 146.55, marking a forthcoming target. It is worth highlighting that a successful breach of this level would propel the price further, aiming for extended gains at 147.00 followed by 147.90.

Hence, the prevailing sentiment remains inclined towards a bullish bias today. However, it's crucial to acknowledge that a failure to surpass the 146.25 threshold could prompt a decline. This scenario could materialize after the formation of a third lower high, potentially guiding the price back to the corrective bearish trajectory.

The projected trading range for the current session is bounded by the support level at 145.30 and the resistance at 147.00.

Overall, the anticipated trend for today is bullish, but bearish below 146.500. 

Daily Price Outlook

Despite concerns about a potential deeper global economic downturn, the Gold Price (XaAU/USD) failed to extend its four-day winning streak and saw a decline during the Asian session on Friday. The XAU/USD is trading just below the $1,915 mark, marking a decrease of over 0.15% for the day. However, the reason behind this downward movement can be attributed to the Federal Reserve's hawkish outlook. This outlook has led to an increase in US Treasury bond yields and propelled the USD Index (DXY) to its highest level since June 6. Consequently, this has prompted some investors to divert their funds away from Gold.

On the flip side, concerns about severe global economic downturn are still prevalent. This is potentially providing some support to the precious metal, often sought as a safe-haven in times of economic uncertainty. This support may help limit the downside for gold, at least for the time being. Moving on, traders seem cautious to place any strong bid as they eagerly await Federal Reserve (Fed) Chair Jerome Powell's much-anticipated speech at the Jackson Hole Symposium.

Fed's Impact on Gold: Hawkish Stance and Market Dynamics

Investors are closely watching the Federal Reserve for clues about interest rate hikes, which greatly affect the US Dollar's short-term value and, in turn, Gold prices. Despite recent sluggish US business activity, Fed officials have hinted at a potential 25 basis points rate increase this year. Boston Fed President Susan Collins suggests rates could stay steady with more hikes possible, ruling out rate cuts for now. Philadelphia Fed President Patrick Harker emphasizes caution, waiting for inflation to drop before discussing rate cuts. Thus, this more hawkish stance has boosted US Treasury bond yields and the USD, pressuring Gold prices lower.

Gold Prices Supported Amid Global Economic Concerns

Across the ocean, worries about a global economic downturn could actually boost the value of precious metals like gold. This is because when the global economy looks shaky, people tend to invest in safe-haven assets like gold. Recently, there have been concerns about China's economy getting worse, and this is making people worried about a possible recession worldwide. These worries are making investors feel less confident, which is making stock markets less strong. Hence, this was seen as a key factor that helped the gold price to limit its losses.

GOLD (XAU/USD) - Technical analysis

The price of gold is currently experiencing a downward movement, testing the critical support level at $1,913.15. This decline is influenced by the negative reading on the stochastic indicator. It's worth noting that the stochastic indicator is gradually showing signs of positive momentum, which could potentially serve as a catalyst for the resumption of the bullish trend. The immediate targets for this upward movement are set at $1,929.00 and $1,945.20.

As a result, the scenario of a bullish trend remains in play. It's important to highlight that a breach below $1,913.15 would invalidate the anticipated upward movement and potentially lead to further price declines. The expected trading range for the current session is anticipated to be between the support level of $1,900.00 and the resistance level of $1,930.00.

Daily Price Outlook

Gold price (XAU/USD) prolonged its upward rally and gained positive traction for Thursday's fourth consecutive day. However, the upward movement was primarily fueled by growing concerns surrounding a potential global economic downturn, which strongly supported the XAU/USD. In the meantime, the emergence of some buying activity in the US Dollar may potentially limit any further gains for this precious metal.

Gold prices have maintained a positive trend for the fourth consecutive day, currently hovering just below the $1,920 mark. This level represents a near two-week high achieved in the previous trading session. However, it's important to note that the XAU/USD pair lacks strong bullish momentum, suggesting exercising caution before considering a continuation of the recent rebound from the $1,885 range.

Global Economic Concerns Boost Gold Prices

It's important to mention that China's economic situation is worsening, and recent surveys about manufacturing worldwide were not good. In the United States, the numbers are also not great. On top of that, the United States, the world's largest economy, is seeing a slowdown in business activity, almost hitting a standstill in August. This is evident in S&P Global's early report on business activity, which had its biggest drop since November 2022, falling to 50.4 in August from the previous 52. This uncertainty is boosting the price of gold, which is considered a safe investment in uncertain times.

Fed Policy and Dollar Strength Impacting Gold Prices

Moreover, the probabilities of the Federal Reserve raising interest rates further are decreasing. This caused the 10-year US government bond yield to drop after reaching a 16-year high. This drop in bond yields is good for gold. However, the market is unsure when the Fed will stop raising rates or even start cutting them. Thus, this uncertainty and some people buying US Dollars might keep traders from being too bullish on gold.

The US Dollar, measured by the DXY Index, has stopped falling after hitting a two-month high. If the Dollar gains strength, it could limit the rise of gold priced in Dollars. Investors await Fed Chair Jerome Powell's speech at the Jackson Hole Symposium. His words will provide clues about future interest rate moves, affecting the demand for the Dollar and influencing gold prices.

GOLD (XAU/USD) - Technical analysis

The gold price concluded the previous session above the level of $1913.15, thereby affirming the trajectory for an ongoing bullish momentum and the attainment of fresh positive objectives commencing at $1929.00 and extending to $1945.20. Consequently, the prospects for a bullish trend persist as a valid and active scenario, underpinned by the EMA50's supportive influence from beneath.

It's worth noting that a breach of the $1913.15 threshold could disrupt the anticipated upward movement and potentially trigger a renewed decline. The anticipated trading range for the present day ranges between the support level of $1905.00 and the resistance level of $1940.00. The outlook for today is expected to remain bullish.

Daily Price Outlook

The EUR/USD currency pair failed to maintain its recent upward trend and dipped back to around 1.0850 on Thursday. However, the reason for its downward trend can be attributed to the decline in business confidence to 96 in France during August, which added to the Euro's challenges and contributed to the EUR/USD pair declines.

Furthermore, the broad-based US dollar regained its strength, which was seen as another key factor that kept the EUR/USD pair lower. Looking forward, the market's attention is now focused on today's data releases, especially Initial Jobless Claims and Durable Goods Orders, which are anticipated to impact currency movements.

US Dollar Stability and Focus on Jackson Hole Symposium:

As mentioned above, the US Dollar has managed to find some stability after stepping back from its recent peak, which saw it reach around 104.00 earlier this week. The USD Index (DXY) is currently hovering around the 103.50 level, showing that there is still some uncertainty in the US financial markets. Looking ahead, all eyes are on the start of the Jackson Hole Symposium.

Investors are anticipating Federal Reserve Chairman Jerome Powell's upcoming speech on Friday. However, there is a renewed debate about the Fed's commitment to sticking with a more cautious monetary policy for an extended period. This discussion has arisen due to the surprising strength of the US economy, even though there has been some softening in the job market and recent reports of lower inflation.

The EUR/USD pair may experience increased volatility as investors closely monitor developments. If Powell signals a shift in the Fed's monetary stance, it could strengthen the US dollar, potentially pushing the EUR/USD pair lower. However, any hints of continued caution from the Fed may support the euro, leading to a possible uptick in the pair's value.

ECB Divisions and Economic Data Impacting EUR/USD:

At the same time, there are disagreements within the European Central Bank (ECB) Council about whether to continue tightening measures beyond the summer. These internal divisions are causing worries about the strength of the Euro. On the economic data front, the eurozone had a relatively quiet period, with French Business Confidence dropping to 96 in August.

Meanwhile, in the US, investors are awaiting data on Initial Jobless Claims, the Chicago Fed National Activity Index, and July's Durable Goods Orders. These various factors collectively play a role in shaping the dynamics of the EUR/USD currency pair.

EUR/USD - Technical analysis

The EUR/USD currency pair is currently trading around the 1.0880 level, maintaining its position just below this level. Notably, the EMA50 intersects with this resistance, lending further reinforcement to its significance. Meanwhile, the stochastic indicator is displaying a clear loss of its positive momentum, signaling overbought conditions at present.

Given these circumstances, we are inclined to anticipate a bearish correction in the upcoming trading sessions, leading to a resumption of the prevailing bearish trend. It is noteworthy that our target for this movement is situated at 1.0785.

However, a breach of the 1.0880 level would negate the anticipated decline and potentially initiate a recovery, potentially resulting in further intraday gains. The projected trading range for today is positioned between the support level of 1.0770 and the resistance level of 1.0920.

Daily Price Outlook

The GBP/USD currency pair failed to stop its slide and continued to drop on Thursday, trading around 1.2710. However, this decline can be linked to disappointing UK PMI data, which showed slower economic growth in the UK. The UK's preliminary PMI data, released on Wednesday, was worse than expected. In the meantime, the S&P Global/CIPS Composite PMI for August fell to 47.9, down from the previous 50.8 and below the expected 50.3. This drop took the index below 50, indicating economic contraction for the first time since January. As a result, the GBP/USD pair faces downward pressure due to concerns about the UK economy's performance.

Impact on GBP/USD Pair: Weaker PMIs and Cautious Investors

The GBP/USD currency pair initially declined, but found some support as US PMIs also disappointed, causing the US dollar to weaken alongside declining Treasury yields. August's S&P Global Manufacturing PMI in the US dropped to 47, below expectations of 49.3, while the Services PMI fell to 51 from 52.3, missing the expected 52.2.

These weaker PMIs signal slower economic growth in both the UK and the US, reducing the probability of upcoming interest rate hikes by their respective central banks. Investors are cautious, awaiting more economic and inflation insights as they watch the US Dollar Index at 103.40 and prepare for Fed Chair Jerome Powell's speech at the Jackson Hole symposium.

Key Economic Data to Watch for GBP/USD Traders

Traders will keep a close eye on the upcoming release of US Initial Jobless Claims and the UK's GfK Consumer Confidence data for August. These reports could provide important insights into the economic situations in both countries, offering new information for GBP/USD traders to consider.

GBP/USD - Technical analysis

The GBP/USD currency pair has encountered robust support at the 1.2625 level, prompting a substantial upward rebound that led to a robust test of the pivotal resistance at 1.2725. It's worth noting that the stochastic indicator is displaying evident signs of waning positive momentum, while the EMA50 is exerting downward pressure on the price movement.

Considering these factors, we hold the view that the conditions are conducive for a resumption of bearish trading dynamics in the forthcoming trading sessions. The initial targets in this projection involve a retest of the 1.2625 level. It is important to acknowledge that breaching the 1.2725 resistance level would invalidate the bearish scenario, potentially initiating a reversal towards higher price levels.

The projected trading range for the current day spans from the support level of 1.2620 to the resistance level of 1.2780. The prevailing trend for today is anticipated to lean towards the bearish side.

Daily Price Outlook

The Gold Price (XAU/USD) has continued its upward momentum, finding support through dip-buying activity on Wednesday. During the Asian session, XAU/USD successfully reclaimed the significant $1,900 milestone. Despite these movements, a notable surge in value remains somewhat elusive. This is largely attributed to the prevailing consensus that the Federal Reserve (Fed) will uphold its hawkish stance.

However, the driving force behind this upward rally can be attributed to the retreat of US bond yields, which in turn, exerts pressure on the US Dollar and provides a modicum of support to gold. Moreover, China's ongoing economic challenges have further boosted the demand for the safe-haven appeal of XAU/USD.

Gold (XAU/USD) Faces Pressure from Rate Hike Expectations but Shows Signs of Recovery

In contrast to this, market participants now appear strongly convinced that the Fed will maintain higher interest rates for a more extended period. They've factored in the chance of another 25 basis points increase in rates before this year concludes. This recent anticipation has triggered an increase in US Treasury bond yields, consequently exerting downward pressure on the value of Gold, a non-interest yielding asset. As a result, the Gold price experienced a decline, reaching its lowest point since mid-March, and it was hovering around $1,885 earlier this week.

Although, the combination of supportive factors has helped Gold (XAU/USD) to make a modest recovery. Over the past three days, it's managed to gain some positive momentum for the third day in a row.

It's important to highlight that the yield from the primary 10-year US government bond experienced a slight decline after reaching its highest level in nearly 16 years on Tuesday. This made people decide to take some profits from the US Dollar. When the US Dollar is weaker, it's generally good for Gold, which is priced in US Dollars.

Factors Affecting Gold and USD Ahead of Jackson Hole Symposium

Furthermore, the ongoing concerns surrounding China's economic outlook were also contributing to Gold's appeal as a safe-haven investment during times of uncertainty. This additional factor is bolstering the ongoing recovery in Gold price. Although, traders seems cautious and refraining from significant moves ahead of the Jackson Hole Symposium.

Thereby, investors are closely monitoring the statements of Fed Chair Jerome Powell during the symposium for insights into future interest rate trends. There's a growing perception that the pace of rate hikes might ease in September, potentially impacting both short-term behavior of the US Dollar and influencing Gold's price trajectory.

GOLD (XAU/USD) - Technical analysis

The price of gold encountered substantial resistance from the EMA50, prompting a swift downward rebound and a subsequent test of the crucial support level at $1889.35. Notably, the price managed to consolidate above this level, leading to a bullish rally as it attempts to reestablish the anticipated upward momentum in the intraday context. The confirmation of this positive scenario hinges on the breach of $1897.00, a move that would signal the continuation of the ascent towards our primary target at $1913.15.

Given these conditions, we maintain our outlook for a bullish trend in the coming period, supported by the current favorable overlapping signal from the stochastic indicator. It is imperative to maintain a level above $1889.35 to sustain the anticipated upward movement.

The projected trading range for today is forecasted to span between the support at $1885.00 and the resistance at $1913.15.