XAU/USD After hitting $4,700, the highest level since mid-May, gold saw a decline. The market price of the Fed policy outlook may be influenced by US employment statistics for August. The technical prognosis for the near future indicates that the bullish bias is still present.
Gold (XAU/USD) ended the week in negative territory after surging over 14% in a three-week surge and hitting its highest level since mid-May above $4,700. The US employment statistics for August may lead to a directional shift the following week, but the technical picture shows that the bullish position is still in place for the foreseeable future.
Gold had a strong start to the week and increased by around 1% on Monday as global tensions decreased due to the US's "economic D-Day" on Iran. As part of its broader campaign to exert economic pressure on Iran, the US Treasury Department imposed fresh sanctions on 60 people, organizations, and ships but refrained from enforcing severe penalties. Treasury Secretary Scott Bessent said that other nations run the risk of being ejected from the dollar-based financial system if they do not cut commercial connections with Iran. However, Bessent refused to specify which nations will be singled out or what kind of sanctions would be applied. The price of the precious metal kept rising, but on Tuesday it lost momentum after approaching $4,700. The USD stabilized ahead of important data releases, limiting the gains of XAU/USD as the general market circumstances remained mostly constant. The Federal Reserve's (Fed) preferred measure of inflation, the Personal Consumption Expenditures (PCE) Price Index and the core PCE Price Index, increased by 3.7% and 3.3% annually in July, respectively, according to a report released on Wednesday by the US Bureau of Economic Analysis. Both readings matched the increase in June.
