Gold – Near-Term Sentiment Strengthens Ahead of Key Event: Powell’s Speech at Jackson Hole

Gold regained momentum on Friday, recovering nearly half of Thursday’s 1.1% decline that had breached and closed below the psychological $2500 level. Support around the previous range’s top at the $2480 zone held firm, containing the dip and closing above the rising 10-day moving average, reinforcing the view that the recent pullback was likely a setup for a renewed upward push.

Fresh gains have now reclaimed the $2500 mark, and a daily close above this level would signal that the bulls are back in full control after a brief dip. The technical outlook remains robust, with daily indicators in a bullish alignment, complementing the overall positive sentiment. Gold recently hit a series of record highs, driven by growing expectations of a September rate cut by the Federal Reserve, heightened geopolitical tensions, and uncertainty surrounding the U.S. economic outlook.

Attention now turns to Fed Chair Powell’s speech at the Jackson Hole symposium later today, with markets widely anticipating confirmation of a September rate cut along with insights into the pace and scope of future policy easing. A dovish tone aligned with market expectations could provide fresh momentum for gold, driving the price further into uncharted territory. A break above the current all-time high of $2531 would open the door to potential targets at $2547, $2564, and $2590.

However, any unexpected remarks from Powell—given the Fed’s need to carefully weigh key factors like the timing, size, or even the possibility of delaying a rate cut—could put gold under fresh selling pressure, likely triggering a deeper correction.

Res: 2509; 2519; 2531; 2547
Sup: 2486; 2480; 2470; 2451