Powell is Gold’s primary source of confirmation.

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Gold is above a converged support area that is quite strong. 

Currently, XAU/USD is attempting to break a significant resistance that could reveal the upside toward 1876.

Which key levels should be monitored?


Following Atlanta Federal Reserve President Raphael Bostic’s remarks on Friday, which he characterized as “slow and steady,” precious metals appear to be maintaining the gains they made last week due to falling US Treasury yields. Gold is probably looking for a second catalyst in order to extend the rebound.

Tomorrow and Wednesday, Fed Chair Powell will give his semi-annual testimony to lawmakers. Financial markets are trying to reaffirm the recent repricing higher of Fed rate expectations, so his remarks will be closely watched. In his previous appearance a month ago, Powell emphasized the theme of “disinflation” but avoided adopting an aggressive tone in response to a blistering jobs report from the United States. XAU/USD may appreciate due to a similar undercurrent. US rate futures predict that the Fed’s target rate will reach a peak of 5.44 percent in September, up from the current range of 4.50-4.75 percent, compared to less than 5 percent at the end of January.


Meanwhile, payroll growth in the United States was 215000 in February, down from 443000 in January, and unemployment is anticipated to remain close to the five-decade low of 3.5%, according to data due on Friday. Since the beginning of the month, US data have been generally better than anticipated, as evidenced by the Economic Surprise Index, which is approximately at its highest level since April.

See “Gold Technical Outlook:” Gold is teetering on the verge of establishing an interim low on technical charts. A Change in the Plans?,” released on March 1. Between 1775 and 1810, the yellow metal has maintained a fairly robust converged support area: the 89-day moving average, the resistance-turned-support on the 200-day moving average, the lower edge of the Ichimoku cloud support, and the August high of 1807 (see the daily chart).

When looking at shorter time frames, gold is attempting to break above a crucial ceiling on a horizontal trendline that began at approximately 1847 at the end of February. A break of this kind could open the way toward the 240-minute chart’s 200-period moving average, which is currently around 1876. However, XAU/USD must break above the February 9 high of 1891 in order to reverse the month-long downward pressure.

About the author

Nafees Saifi // entrepreneur, author, trainer, and stocks and FX trader. 
Nafees Saifi is a professional FX trader from, India. Nafees has extensive experience trading commodities, bonds, and equity futures in the Asian, European, and US markets. Nafees holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.


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