Gold prices are stabilizing around $3,365 as traders turn their attention to a highly anticipated speech from Federal Reserve Chair Jerome Powell and the release of updated US GDP data. The market tone leans bullish, though participants remain careful given the potential for sharp swings driven by central bank signals and economic indicators.
🔑 Market Drivers
1. Powell at Jackson Hole – Policy Direction in Focus
Investors are waiting for Powell’s remarks at the Jackson Hole symposium, which could provide crucial clues on the Fed’s next steps. Market pricing currently reflects an 85% chance of a 25-basis-point rate cut. If Powell confirms a softer policy outlook, gold could gain additional momentum.
2. US Dollar and Treasury Yields Under Pressure
The dollar index and Treasury yields continue to trade lower, reflecting weaker confidence in US growth and expectations of monetary easing. This backdrop has kept the gold market supported, as lower yields typically boost demand for non-yielding assets like bullion.
3. Technical Landscape – Short-Term Structure
From a technical standpoint, gold retains a positive setup in the near term. Price action shows solid intraday support, with traders watching whether XAU/USD can maintain its current base and break higher into fresh territory.
📊 Economic Spotlight – US GDP Revision (Q2)
The revised Q2 GDP figure is forecast to come in at 2.0%, down from the previous 3.0% estimate. This adjustment would reinforce signs of slowing growth in the US economy.
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A weaker GDP print would strengthen expectations of Fed easing → supportive for gold.
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A stronger GDP outcome could revive hawkish bets → potential headwind for gold.
⚖️ Outlook and Strategy
With markets positioning ahead of Powell’s speech and GDP data, sentiment leans toward a cautious bullish view on gold. Traders should expect volatility, with key support seen at $3,365, while upside potential remains if dovish signals dominate.
Trading Takeaway:
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Bias: Cautiously Bullish
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Key catalysts: Fed Chair Powell’s remarks + GDP figures
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Watch zones: $3,365 support, breakout potential if fundamentals align