GOLD PRICE FORECAST: BREAK ABOVE $1800 TO ADD CREDENCE TO THE CONSTRUCTIVE XAU/USD SET-UP

Gold is hovering around $1,785. A move above the $1800 level would see the yellow metal gaining bullish traction ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium, FXStreet’s Haresh Menghani briefs.

PROSPECTS FOR A FURTHER NEAR-TERM APPRECIATING MOVE

“Investors might also refrain from placing any aggressive bets, rather prefer to wait on the sidelines ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole symposium.”

“The flash version of PMI prints from the Eurozone and the US would be closely watched to gauge sentiments. This, along with the USD price dynamics, might play a key role in influencing the commodity and produce some meaningful trading opportunities on Monday.”

“Last week’s swing high, around the $1,795 region, might act as an immediate resistance ahead of the $1,800 mark. A sustained strength beyond will reaffirm the positive outlook and allow gold to surpass the $1,809-11 confluence zone, comprising of 100-day and 200-day SMAs. The momentum could further get extended towards the double-top resistance, around the $1,832-34 zone, which if cleared decisively should pave the way for additional gains.”

“The $1,777-75 area now seems to protect the immediate downside ahead of the trend-channel support, currently around the $1,768-67 region. A convincing break below will shift the bias back in favour of bearish traders and prompt some aggressive technical selling. XAU/USD might then accelerate the slide towards the $1,751 horizontal support.”