Gold prices posted a rise today, halting some of the losses they had in the last few sessions, as the price moved above the simple moving average 9 on the 4-hour chart.
Gold is currently trading above the weekly pivot point at $3343, looking to maintain its trading above it to rise towards resistance levels at $3363 and then $3378.
On the downside, if gold fails to maintain trading above the pivot point at $3343, it will lose positive momentum and then retest the first support level at $3328. If the price settles below the bullish trend line, it could retreat towards the second support level at $3308.
From a fundamental standpoint, markets are now gearing up for the release on Wednesday of minutes from the Fed’s last policy gathering in July, when the central bank chose to keep borrowing costs steady at a range of 4.25% to 4.5%.
Yet the decision was met with the rare dissent of two Fed officials for the first time in decades. Fed Governors Christopher Waller and Michelle Bowman both advocated for a rate reduction, arguing that it was necessary to help prop up a softening labor market.
Ukraine’s Volodymyr Zelensky is due to meet with Trump in Washington on Monday in a bid to arrange a peace deal.
But worries remain that Trump could try to use the talks to drive Zelenskyy into a settlement agreement that has been viewed as favorable to Russia. Zelensky has already appeared to dismiss the contours of proposals presented to Trump by Putin at a summit in Alaska on Friday, which included Ukraine losing a chunk of its eastern Donetsk region.
On the economic data front, the U.S. services and manufacturing PMI are likely to grab attention. If the data exceeds expectations, it could negatively impact gold prices.
Finally, Federal Reserve Chair Jerome Powell is set to give his most important policy speech of the year on Friday at the annual Jackson Hole Economic Symposium.
Ahead of Powell’s speech, likely to be his last as Fed chair, markets are placing the probability the Fed will cut rates by at least 0.25% next month at around 85%.