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Title: Gold Price Forecast: XAU/USD run-up eyes $1,770 as China favors bulls, focus on Jackson Hole

Aug 25, 2022 03:45AM ET

By: AnalysisWatch

Gold price rises for the third consecutive day to refresh weekly top.

Sluggish yields, hopes of less-hawkish central bankers exert downside pressure on DXY.

China’s status as the key XAU/USD consumer favors the metal buyers in times of stimulus.

Gold price (XAU/USD) prints a three-day uptrend while renewing the weekly high around $1,760 heading into Thursday’s European session. In doing so, the precious metal cheers softer US dollar, as well as stimulus news from China, as traders await the interest rate guidance from the Jackson Hole Symposium.

China’s Cabinet, State Council, outlined a 19-point policy package while announcing economic stimulus measures worth CNY1 trillion ($146 billion) to stimulate growth affected by covid lockdowns and property market crisis, per Bloomberg. Additionally, Li Zhong, Vice Minister of the Ministry of Human Resources and Social Security, said on Thursday that China will focus on expanding jobs and promote fiscal, monetary and industrial policies to support job market stabilization.

old price remains firmer after crossing the downward sloping trend line from August 12, as well as the 200-SMA. The upside momentum also takes clues from the bullish MACD signals and upbeat RSI, not overbought.

It’s worth noting, however, that a three-week-old horizontal resistance area near $1,770-72 restricts short-term XAU/USD upside ahead of directing the bulls towards the monthly peak of $1,808.

Meanwhile, a convergence of the 200-SMA and the weekly support line, close to $1,749, restricts short-term declines of the yellow metal.

Following that, the 61.8% Fibonacci retracement level of late July to early August upside, near $1,730, appears the last defense of the gold buyers.

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