Daily Price Outlook
The Gold Price (XAU/USD) has taken a pause from its recent decline, breaking away from the lowest levels it reached over the past five weeks. However, the pause in the decline could be attributed to a few factors. Firstly, there's been a decrease in the yields of US Treasury bonds, which tends to support the value of gold.
Furthermore, the US Dollar has been weakening, and this too has played a role in gold's recent uptick. Moreover, there's a sense of optimism surrounding potential stimulus actions from China. This hopeful outlook about China's potential economic support has positively influenced the gold price, contributing to its recent improvement.
However, it's worth noting that US bond yields are still facing pressure, having come very close to hitting a multi-year high just the day before. On a related note, the US Dollar Index (DXY) is finding stability after a streak of four consecutive weeks of gains. This steadying of the US Dollar's performance aligns with the upcoming Jackson Hole Symposium, an annual event where influential central bankers share their insights. The anticipation of this event is playing a role in shaping the current state of the market.
Evergrande's Bankruptcy Filing Sparks Market Concerns, Impact on Gold Price
China's second-largest real estate company, Evergrande, is in big financial trouble due to a lot of debt. They asked a US court for help, worrying about the economy. Some think China might help, calming worries. Gold's price went up a bit but isn't doing well. People who sell gold think it'll drop more, maybe below $1,900. Gold had a small recovery, but won't last. It's not high enough for a big rise. Sellers hope it drops more. Evergrande's problems shook the market, and there's debate about China's support. Gold's brief rise might reverse, giving sellers hope for a bigger fall.
GOLD (XAU/USD) - Technical analysis
The gold price continued its downward movement in the previous session, reaching the level of $1885.00. This reinforces the prevailing outlook of a persistent bearish trend, with the subsequent target positioned at $1873.50.
Anticipated trading activity for the present day is projected to fluctuate within the range of support at $1873.50 and resistance at $1905.00.
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