On Monday, the short-term outlook remains supportive for gold, especially above 1,490 level. Overall, precious metal gold slipped due to a stronger U.S. dollar and a recovery in stock markets. That happened as signs of more stimulus from major central banks around the world eased concerns about a recession.
The dollar is getting stronger, and given that gold had a very good rally over the last few weeks, we are just seeing some profit-taking coming in.
Geopolitical Tensions & Safe Haven Appeal
Global economic growth concerns united with geopolitical tensions, namely in Hong Kong, should extend support over the near-term.” The first significant support is at $1,500-$1,495 an ounce and later at $1,475 – $1,480.
On the upside side, resistance can be seen at $1,525 – $1,535, the triple top areas. The focus this week is unquestionably on the FOMC minutes which are scheduled to be released on Wednesday and Fed chairman Powell’s speech at Jackson Hole on Friday.
Support and Resistance
Key Trading Level: 1509.3
Gold – XAU/USD – Forecast
Considering the lack of volatility due to the absence of economic events during the US session, we may see gold trading above 1,490, and a bullish reversal is also expected above this level. Thus, consider staying bullish above 1,490 with a stop loss below 1,485 and target around 1,500 and 1,504.
All the best!