Gold has been consolidating itself above 1772 since last week, trading inbetween the range bound with first temporary resistance at 1796 and exponential moving average 200 above the current market price at 1790. This shows that the 1790-1796 range is a no trade zone until we get an impulsive fractal at either end for instance a fractal below would lead the market towards 1775-1768 again. Gold is hovering around 1785. 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.

XAUUSD is still trading well below our 50% fibb retracement level and has failed to provide us with a breakout above yet, which would indicate that the shining commodity will be heading towards our upper trend line and 61.8% fibb retracement level i.e 1815-1830.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The swing high from last week around the 1796 region, might act as an immediate resistance ahead of the 1800 mark. A sustained strength beyond will indicate the hawkish outlook and allow gold to surpass the 1809-1811 confluence zone. The momentum could further get extended towards the double-top resistance around the 1832-34 zone, which if cleared decisively should pave the way for additional gains.

The 1777-1775 support zone now seems to protect the immediate downside ahead of the trend-channel support, currently around the 1768-1767 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 1751 horizontal support.

XAUUSD

Aug 23 2021