The price of gold was strong today as investors waited for Chief Minister Jerome Powell’s speech at the Jackson Hole Symposium later, After some US Federal Reserve officials called for a bond purchase. It has recorded some slight gains from previous session. Yesterday the Federal Reserve’s hawk policy analysts considered the central bank’s bond purchases useless. St. Louis Fed President James Bullard, Kansas City Fed President Esther George and Dallas Fed President Robert Kaplan also underestimated the impact of the Delta variance in separate interviews.

The higher US dollar appreciation eases some pressure from the price of gold among concerns that the soft U.S. initial jobless data that will expand the precious metal to other currencies will start a cut in its bond-purchasing program. Concerns about the delta pandemic are eroding investor confidence and risk appetite, which could eventually help revive the gold price correction.

Ignoring the US dollar’s recovery, the yellow metal also benefited from the bearish mood of the previous day’s market. However, the cautious feeling ahead of Fed chair Jerome Powell’s speech at the Jackson Hole Symposium explores the price of the gold. The main contributors to the sour sentiment were the recent comments by central bank officials, and supported the geopolitical challenges of the Middle East and China, not to forget the Covid tragedy. Powell is set to speak at 1400 GMT in the Kansas City Fed’s central banking conference, an event normally held in Jackson Hole, Wyoming, which has been often used by Fed policymakers in the past to provide guidance on their future policy.

Dallas Fed President Robert Kaplan said he believed the progress of economic recovery warrants tapering of the Fed’s asset purchases to commence in October or shortly thereafter, following earlier comments from St. Louis Fed James Bullard and Ester George were the rest of the non-voting Fed members who followed Kaplan and firmed up concerns over tapering. Furthermore, Blast at Kabul airport and reports of two or three US officials being hurt raised worries of the US response to the Taliban.

It is worth noting that viral tragedies and geopolitics challenge market sentiment along with a cautionary tale ahead of Fed Chairman Jerome Powell’s Jackson Hole Symposium speech. As it moves, US data, such as the core PCE price index for July, will join the risk stimulus to delight gold traders. However, the main focus will be on how Powell defends Fed’s easy monetary policy.

XAU/USD 4 Hour Chart:

Support: 1781.8 (S1), 1771.9 (S2), 1763.7 (S3).

Resistance: 1799.9 (R1), 1808.1 (R2), 1818.0 (R3).

Amidst this above catalysts the yellow metal showing consolidated mild gains on the last US session. We expect a bullish trend for XAU/USD.