The Spot Gold (XAUUSD) price has been under pressure over August as higher US Treasury Yields and a rising US Dollar continue to weigh in on higher precious metal prices. 

US Inflation remains sticky despite a slight easing in US core inflation data; headline inflation remained in line with Wall Street’s expectations. The release of the FOMC meeting minutes scheduled for this week could indicate the US Fed’s trajectory, which is still expected to be very data-dependent.  

Major events that could move the price of Gold this month include the BRICS summit, where a Gold backed digital currency is on the discussion table. The Jackson Hole Symposium is another notorious event for the Fed officials to drop hints about their future monetary policy.  

Technical 

Looking at the daily price chart of XAUUSD, we can see that the price action is finding support at the $1909/ ounce level, which will be watched closely for a rebound. The overhead resistance level in focus coincides with the 50-day SMA (blue line) at $1937/ ounce.  

If the significant support level at $1909/ounce (red line) does not hold, we could expect the next level of support around $1890/ ounce to be firmly in focus.  

Summary 

Economic data remains topical this week, with the FOMC Meeting Minutes scheduled for Wednesday, which could bring back some market volatility. Significant levels of support to watch are the $1909 and $1890/ ounce, while the overhead resistance at $1937/ ounce comes into focus if the price action trends higher from current levels.  

Source: Reuters, Koyfin, TradingView.