One-Month Lows In Asia As Dollar Rallies

Gold is ~$12/oz worse off to print $1,726/oz, sitting a little above freshly made one-month lows at writing after breaking below Friday’s trough earlier.

• The move lower comes amidst an uptick in nominal U.S. Tsy yields and the USD (DXY), with the latter hitting its own fresh cycle highs above the 109.00 mark.
• The precious metal remains firmly on track for a fifth consecutive lower monthly close, the longest such losing streak since 2018.
• To recap Friday’s price action, gold closed ~$20/oz lower following Fed Chair Powell’s hawkish (and relatively short) speech at the Jackson Hole Symposium, with participants focusing on comments re: keeping rates restrictive “for some time”.
• From a technical perspective, gold has broken initial support at $1,727.8/oz (Aug 22 low), exposing further support at $1,711.7/oz (Jul 27 low). Further declines will see gold approach support at $1,681.0/oz, the Jul 21 low and bear trigger. On the other hand, initial resistance is seen at ~$1,765.5/oz (20-Day EMA).