Gold Price Analysis: XAU/USD bounces from $1780 toward $1800

• Economic data form the US near expectations, attention on Fed Chair Powell’s speech.
• DXY rebounds but fails to hold above 93.00.
• Gold bounced sharply even amid a stronger dollar.

Gold prices bounced sharply from the lowest level in six days at $1780 and climbed to $1798 hitting a fresh daily high. The yellow metal lost momentum near the $1800 area, but still remains in positive territory for the day.

Price action across financial markets seems erratic on Thursday ahead of the key speech on Friday from Fed’s Chair Powell. He is a speaker at the Jackson Hole Symposium. His words will be watched closely, with market participants waiting for clues about the future of the purchase program. Fed’s Bullard warned about high inflation and said he expected a complete tapper by March of next years.

US yields reached weekly highs and then pulled back. The 10-year climbed to 1.375% before falling to 1.351%. The retreat helped gold stage a sharp recovery toward $1800.

The direction in XAU/USD is not clear and technical indicators offer mixed signs. Price action could remain sideways ahead of Powell’s presentation. Economic data released in the US on Thursday (initial jobless claims and Q2 GDP) came near expectation having no impact on markets.

Technical levels