Gold price climbs to session tops, around $1190 level

August 24, 2018

New York (Aug 24)  Gold prices inched up on the last trading day of the week and recovered a part of previous session's modest losses.

Having retested weekly lows, around the $1183 level, the precious metal regains some positive traction and was being supported by some renewed US Dollar weakness.

With investors looking past Wednesday's release of the latest FOMC meeting minute, the greenback struggled to build on overnight up-move and provided a minor lift to the dollar-denominated commodity.

Meanwhile, the two-day trade talks between China and the US ended with any major breakthroughs and might help limit any further downside for the greenback.

This coupled with firming expectations for an imminent Fed rate hike in September might further contribute towards capping any meaning up-move for the non-yielding yellow metal.

Hence, today's key focus would remain on the Fed Chair Jerome Powell's highly anticipated speech at the annual Economic Policy Symposium, in Jackson Hole.

Ahead of the key event risk, the release of US durable goods orders data, a key highlight of today's economic docket, might also help traders grab some short-term opportunities.

Technical levels to watch

Any subsequent up-move is likely to confront immediate resistance near the $1196 horizontal level and is followed by the key $1200 psychological mark. On the flip side, weakness below $1183 level (session low) could drag the commodity back below $1180 area towards retesting recent daily closing lows support near the $1174-73 region.



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