XAU/USD bulls attack $1,750 as traders get ready for Jackson Hole
Following a two-day rally, gold prices remain defensive at around $1,752 on Thursday during the Asian session. Gold reflects the market’s apprehension before important data or events as well as the mixed results of recently released figures.
On Wednesday, spot gold prices increased slightly to trade at around $1,750 per ounce. The dollar had a solid start to the day before losing ground following Wall Street’s opening. In general, there isn’t much activity in the financial markets before the Jackson Hole Economic Symposium, which begins on Thursday, as reported by FxStreet.
The US announced July Durable Goods Orders, which came in at $273.5 billion, almost exactly unchanged, falling short of forecasts for a 0.6% increase. The Nondefense Capital Goods Orders excluding Aircraft, however, grew by 0.4%, exceeding the 0.3% forecast.
Powell’s address at the Jackson Hole meeting on Friday—whose official title as of right now is “Economic Outlook”—will be a major driver for precious metals and the markets this week. But the main focus of the conference will be on “Reassessing Constraints on the Economy and Policy,” as reported by Kitco News.
Technically, October gold futures bears still have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1800. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1686, as reported by Kitco News.
Investors should be noted that the gold chart is consolidating in the range from $1727 to $1757. First resistance is seen at today’s high of $1759 and then at 1775. First support is seen at today’s low of $1745 and then at this week’s low of $1727. Investment is risky, so investors should set a stop-loss function to protect their capital.