Fresh Four-Week Lows In Asia

Gold is little changed, printing $1,747/oz at writing, operating just above four-week lows ($1,744.9/oz) made earlier in the session. The precious metal continues to drift lower after a brief show above $1,800/oz earlier in August, facing headwinds from a simultaneous rally in the USD (DXY) and U.S. real yields.

• To recap, gold closed ~$12/oz weaker on Friday, ending lower for the week on the back of five consecutive lower daily closes, snapping a four-week streak of higher weekly closes in the process.
• Gold dipped to fresh lows on Friday amidst Fedspeak from Richmond Fed Pres Barkin (‘24 voter), after he stated that the Fed would “do what it takes” to bring inflation back to 2% even if it caused a recession, adding to the recent chorus of hawkish Fedspeak.
• Looking ahead, the key risk event for gold this week looks to be Fed Chair Powell’s keynote speech at the annual Jackson Hole Symposium, to be delivered on Friday.
• From a technical perspective, gold has broken key short-term support at $1,754.4/oz (Aug 3 low), exposing further support at $1,711.7/oz (Jul 27 low). On the other hand, key resistance is situated at $1,807.9/oz (Aug 10 high and bull trigger).