8.26 FPG gold trend analysis

XAUUSD H1

Federal Reserve Chairman Powell sent the strongest signal of interest rate cuts so far in his speech at the Jackson Hole meeting on Friday evening, claiming that further cooling of the labor market situation is neither sought nor welcomed. Now is the time to adjust the policy. The speech showed full dovism, saying that the Federal Reserve intends to act to avoid further weakening of the US labor market. After the speech, the market increased its bet on the Fed's interest rate cut. It is expected that the Fed will cut interest rates by 100BP during the year (50 BP in September and 25 BP each in November). The US dollar index also fell below the 101 position in line with the speech, reaching a low of 100.6 during the year. The downward movement of the US dollar allowed gold denominated in US dollars to rise again. In the short term, it reached a high closing level after 2,518. This week, the US second-quarter GDP revision and PCE index will be announced on Thursday and Friday, which may have a huge impact on gold in the short term.

On the technical side, gold continued to rise in the previous upward channel, but Dali's good speech failed to cause the price of gold to break through the previous resistance around 2520. It also meant that there were strong short orders and profitable orders in this position, and the increase was limited. Focus on the resistance around 2520. If suppression continues, the price may fluctuate downward following a newly formed downward channel.

The upper line resistance is 2520, the second line resistance is 2525, and the third line resistance is 2530.

The lower first line supports 2510, the second line supports 2500, and the third line supports 2495.

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This advice is general and does not take into account your specific financial situation and needs. Investments involve risk, so be sure to evaluate them carefully. #