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Just Off Four-Week Lows; Dollar Strength Eyed Ahead Of Jackson Hole

GOLD

Gold sits $3/oz to print ~$1,739/oz at writing, consolidating a little above Monday’s lows as the USD has seen some light selling pressure, with the DXY sliding back below the 109 mark.

  • The path of least resistance remains downwards for gold amidst proximity to the Fed’s Jackson Hole Symposium, with bullion sent to fresh four-week lows on Monday ($1,727.8/oz) on an uptick in the DXY and U.S. real yields, ultimately closing $10/oz softer on the day for a sixth consecutive lower daily close.
  • Investor interest as seen in total ETF holdings of gold continues to remain weak, with the measure declining for a tenth straight week last Friday, operating at levels last witnessed in end-Feb.
  • From a technical perspective, conditions for gold remain bearish following its failure to convincingly clear trendline resistance (drawn from the Mar 8 high), with initial support seen at $1,729.5/oz (61.8 retracement of the Jul 21-Aug 10 climb), and further support at $1,711.7/oz (Jul 26 low). On the other hand, key resistance is situated at $1,807.9/oz (Aug 10 high and bull trigger).

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