After Fed Chairman Jerome Powell’s remarks at the Jackson Hole Symposium, the Gold Spot price XAU/USD faced selling pressure on Friday. The spot price is near $1,910, where the 20-day and 200-day Simple Moving averages (SMA) are about to cross in a bearish direction.

Chairman Powell stated that the Federal Reserve (Fed) must exercise caution for the upcoming meetings. He remarked that the economy has not cooled as anticipated and that the bank will maintain its restrictive policy until the economy demonstrates indications of cooling. As he stated in July, everything will depend on the incoming data. The Fed will receive an additional Nonfarm Payrolls and inflation report in August, and these data points will aid investors in forecasting future outcomes.

US yields, which tend to be negatively correlated with non-yielding metal prices, increased in response to the speech, with the 2-year yield increasing by more than 0.80%. Consequently, the likelihood of a 25 basis point (bps) advance in November increased to 44%, according to the CME FedWatch tool.

XAU to USD Levels to observe
The technical analysis of the daily chart indicates a neutral to bearish outlook for the XAU/USD pair, signifying a decline in the recent bullish strength. The Relative Strength Index (RSI) displays a negative slope below its centerline, whereas the Moving Average Convergence (MACD) displays neutral green bars.

Levels of support: $1,900, $1,880, and $1,855

$1,919 (bearish cross between the 20 and 200-day SMA), $1,933, and $1,955 are resistance levels.

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