XAU/USD Price Analysis: Gold Retains Bullish Bias Despite US Dollar Strength
- US Dollar Strengthens on Positive Macroeconomic Data
- Fed’s Favorite Inflation Gauge to be Released at End of Week
- Potential Correction in XAU/USD Price, But Record Highs Still Possible
Gold continues to show a bullish bias as it approaches the record high of $2,531.60, despite some strength in the US Dollar following positive macroeconomic data. Federal Reserve Chairman Jerome Powell’s recent comments on monetary policy adjustment have influenced market sentiment, with expectations of a rate cut in the upcoming September meeting.
Recent data releases in the US, such as the Durable Goods Orders and the Dallas Fed Manufacturing Index, have shown better-than-expected results, adding to the strength of the US Dollar. However, market focus remains on the upcoming release of the Personal Consumption Expenditures (PCE) Price Index, which is the Fed’s preferred measure of inflation.
Technical Analysis of XAU/USD
The daily chart indicates that Gold is poised for further gains, with technical indicators showing strength above their midlines. Despite a potential corrective decline in the short term, Gold remains well supported by moving averages, pointing towards a positive outlook. Support levels to watch for are $2,508.80, $2,496.40, and $2,485.10, while resistance levels are at $2,523.50, $2,531.60, and $2,542.00.
Overall, Gold’s bullish bias remains intact, with the potential for record highs still in play despite some near-term volatility in the XAU/USD price. Investors should monitor upcoming US data releases and Fed announcements for further direction in the precious metal market.