Gold remains on the back foot as uncertainty remains prevalent ahead of the all-important policy review from the central bank. Jerome Powell, Chairman of the Federal Reserve, is set to deliver a speech that may open the floodgates to more monetary stimulus – potentially pushing the precious metal higher.
However, investors are yet to be convinced that additional money printing is on its way, reducing their bets on XAU/USD.
How is gold positioned on the charts?
The Technical Confluences Indicator is showing that XAU/USD is facing fierce resistance at around $1,933, which is the convergence of the Bollinger Band 15min-Upper, the Simple Moving Average 5-4h, the SMA 100-15m, the Fibonacci 23.6% one-month, and more.
Further above, gold is capped at $1,936, which is the meeting point of the previous 4h-high and the Fibonacci 23.6% one-week.
Looking down, support awaits at $1,906, which is where the Pivot Point one-day Support 1 and the previous weekly low converge.
Another cushion is at $1,898, which is the confluence of the PP one-day S2 and the Fibonacci 38.2% one-month.
Powell’s speech on Thursday will likely be the next major dollar driver, with investors watching to see if he signals that the U.S. central bank will shift its inflation target to an average. This would allow inflation to rise higher than previously before the Fed raises rates, making up for decades of benign price increases.
“I think we could get some pullback in foreign currencies and dollar strength if Powell doesn’t really, really strongly come out and say we’re doing inflation average targeting,” Nelson said.
1953 now. Like i said yesterday. Today us federel reserve will do conference about inflation in us. Investors waiting to see if gold will be up or us dollar will be stronger vs foreign currency
No one knows. But if us people are worried about the inflation and usd strength. They will buy gold again like back in early pandemic time. Then maybe nice will have some show.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
trythis
163 posts
Posted by trythis > 2020-08-25 12:12 | Report Abuse
Base on trend line analysis. Gold still fall inside the uptrend. But always US open market gold drop. Possible US push their currency.