Article by: ETO Markets
Gold prices (XAU/USD) saw a slight increase during Wednesday's Asian trading session, though they remain confined within a familiar range. The price movement was influenced by Federal Reserve (Fed) Chair Jerome Powell's dovish remarks on Tuesday, which provided a boost to precious metal prices. Powell expressed satisfaction with current inflation progress but emphasized the need for greater confidence in sustainably lowering inflation to the 2% target before beginning any rate cuts. However, the release of the JOLTS job openings data, which came in at a better-than-expected 8.14 million, curbed the upward momentum of gold prices. Traders seem inclined to await further clues on the Fed's policy direction, such as tonight's FOMC minutes and key employment data, including the unemployment rate and non-farm payrolls, scheduled for Friday.
From a technical perspective, The Relative Strength Index (RSI) at 51 does not indicate a clear trading bias. XAU/USD has reached the end of a triangular consolidation pattern, with daily price movements becoming increasingly narrow, suggesting that the pair might be gathering momentum for a breakout. The high points from late June, in the $…-$…range, represent the first hurdle for gold buyers, followed by the $…level, and eventually aiming for the all-time high of $…. Conversely, a drop below the $…level could attract new sellers, potentially accelerating the decline towards the $…area, and ultimately down to $….
