Gold jumps back beyond 200-SMA ahead of Fed Chair Powell speech

Gold justifies the rebound from a two-week-old rising support line to cross the 200-SMA, suggesting further advances towards the key resistance line from July 29, around $1,806. In addition to an important trend line hurdle, today’s Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium also becomes crucial for gold traders. Hence, the bullion players should wait for both the events, the latter is better, for clear direction. Should the bulls take over past $1,806, a monthly high surrounding $1,831 and July’s peak surrounding $1,835 should return to the charts.

Meanwhile, 200-SMA and the stated immediate support line restrict the metal’s short-term downside respectively around $1,794 and $1,782. During the quote’s fall past $1,782, the mid-August’s swing low near $1,770 could offer another chance for the bull’s entry. Failures to do so can drag gold prices towards August 10 low near $1,717 before highlighting the $1,700 threshold.