GOLD PRICE FORECAST: XAU/USD GRINDS HIGHER PAST $1,895 SUPPORT AS PMI DATA LOOMS – CONFLUENCE DETECTOR

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  • Gold Price braces for the first weekly gain in five despite positing mild daily gains of late.
  • Cautious optimism joins positioning for PMI data to weigh on US Treasury bond yields, US Dollar and underpin XAU/USD rebound.
  • Softer preliminary PMIs from top-tier economies can prod central bankers from turning hawkish at Jackson Hole and favor Gold buyers.
  • Sustained trading beyond key support confluence keeps XAU/USD bulls hopeful.

Gold Price (XAU/USD) stays on the front foot for the fourth consecutive day despite lacking upside momentum ahead of the top-tier statistics.

That said, the XAU/USD’s latest run-up could be linked to the US Dollar’s retreat amid softer Treasury bond yields and slightly positive market sentiment.

Furthermore, expectations of improving US-China ties and mixed concerns about the dedollarization at the BRICS Summit, currently held in South Africa to facilitate diplomatic discussion among Brazil, Russia, India, China and South Africa, also favor the Gold buyers.

On the same line could be the market’s heavy bets, per the interest rate futures, suggesting no change in the Fed rate in September, as well as expectations favoring the lack of hawkish bias in Fed Chair Jerome Powell’s speech at Friday’s Jackson hole Symposium.

It’s worth noting, however, that the recently firmer US data and the Federal Reserve policymakers’ hesitance in welcoming the rate-cut bias seems to guard the XAU/USD rebound as markets await preliminary readings of the August month Purchasing Managers Indexes (PMIs) for major economies


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