Gold Daily Outlook Update Gold (XAU/USD) continues to trade on its bearish path on Wednesday, as heightened geopolitical concerns and a higher likelihood of a Federal Reserve (Fed) interest rate hike in September add to speculation about the US Dollar's favorability. The precious metal has tested the $4,300 per ounce support level as of writing, down 3.25% for the week thus far. Bullion has come under pressure after US Fed Chairman Kevin Warsh raised the chances of an interest rate hike in September at the annual Jackson Hole symposium for central bankers on Friday. Warsh took a surprisingly tough stance, asserting that the focus should be on prices and that they need to bring interest rates to 2%. Furthermore, the renewed fighting between the US and Iran has contributed to increased risk aversion, thereby bolstering the safe-haven currency, USD. The US troops initiated another attack against the IRGC targets in Iran, to which an attack in response was made against US troops in Bahrain, Iraq, and Jordan. XAU/USD is quoted at $4,310 and is trading with an immediate bearish bias below the 200-day SMA, while the technical indicators have shown a negative bias for the asset. Daily RSI has dropped below the important 50 level, while the MACD is in very negative territory at -30.53, implying strong momentum towards the downside. Any break below the mentioned $4,300 zone (August 14, 18 and 19 lows) would set sights on the August 6 low, around $4,225, before testing the late July lows in the $4,000 range. Meanwhile, the previously supportive area of $4,450 (August 20 low) is expected to work as a barrier in the current context. On the higher side, the aforementioned 200-day SMA at $4,530 will be tested by the bulls before last week's highs around $4,700.
