XAU/USD Reaches New Highs at $2,506.95: What’s Driving the Price?
- Global Policymakers to Gather at Jackson Hole Symposium
- US Dollar Continues Slide as Optimism Prevails
- XAU/USD Approaches Record Highs with Bullish Momentum
Spot Gold is trading near a record high of $2,509.80, supported by weakening US Dollar demand. Despite a brief pullback from Friday’s peak, buyers remain active, keeping the precious metal above the $2,500 mark. Positive sentiment in equities is weighing on the USD, while a lack of economic data is limiting volatility.
All eyes are on the upcoming Jackson Hole Symposium, where global policymakers will convene. Federal Reserve Chairman Jerome Powell is set to speak on Friday, with markets eager for insights on potential interest rate cuts. The Fed has hinted at a dovish stance, with inflation concerns balancing against labor market challenges.
Meanwhile, S&P Global will release preliminary estimates of August’s PMIs, adding to market volatility.
XAU/USD Technical Analysis
The XAU/USD pair is consolidating near its record high, with strong support at the $2,385 level. Technical indicators suggest bullish momentum, with the 20 SMA acting as dynamic support at $2,429.00. In the short term, the uptrend is intact, with resistance levels at $2,510.00, $2,523.50, and $2,535.00.
Support levels: $2,496.40, $2,485.10, $2,427.20
Resistance levels: $2,510.00, $2,523.50, $2,535.00
Analysis:
Gold prices are surging as the US Dollar weakens, driven by anticipation of dovish Fed policies. Investors are eyeing the Jackson Hole Symposium for further clues on monetary policy direction. With support levels holding strong, XAU/USD remains in a bullish trend, offering potential gains for savvy investors.