Gold Daily | Spot Gold Trends Lower Amid Strong Dollar and Anticipation of Powell's Jackson Hole Speech

【Latest Gold Price and Recent Trends】

As of the latest update, spot gold is trading around $3338 per ounce, maintaining a slight downward trend influenced by a stronger US dollar. The market is cautious ahead of Fed Chair Powell's speech at the Jackson Hole symposium, which may offer new insights on monetary policy.

【Technical Analysis】

The daily chart indicates gold faces downside risks as the 14-day RSI remains below 50, and the moving average bearish crossover sustains a negative outlook. Gold sellers need to establish a strong position below the 100-day moving average at $3314 to continue the downtrend, aiming for targets at $3274 and eventually $3250. Conversely, buyers need to break the strong resistance around $3350 to reverse the short-term bearish bias, with further targets at $3375 and $3400.

【Market Sentiment and Economic Background】

The US dollar has been buoyed by strong economic data, reducing expectations of a Fed rate cut next month. US housing and business activity reports have been robust, and the S&P Global Composite PMI rose to an eight-month high. These factors have led to a diminished likelihood of a September rate cut. Concurrently, US equity markets are experiencing sell-offs due to AI investment concerns, enhancing the dollar's safe-haven appeal.

【Analyst Opinions】

Analysts suggest that Powell's speech might significantly impact rate cut expectations and subsequently influence the dollar's performance, causing volatility in the gold market. If Powell downplays aggressive rate cuts, it could bolster the dollar, potentially driving gold prices below $3300. Conversely, a dovish shift could trigger dollar selling, allowing gold to rise. Analysts highlight that any clear direction in gold price will likely depend on Powell’s stance on rate cuts.