The gold price seeks to break over $1,740.00 on mixed expectations for US Purchasing Managers Index (PMI) data. Earlier, the precious metal rose strongly after hitting a new monthly low of $1,727.85 on Monday. Because the retreat move appears less profitable owing to the lack of momentum in the rising rise, gold prices will stay volatile.

The S&P Global Manufacturing PMI is anticipated to fall to 51.5, from 52.2. However, the Services PMI might rise to 49.1 from 47.3. The dismal preliminary forecasts for US Durable Goods Orders have supported the yellow metal XAU/USD.

According to market expectations, the economic figures would be revised down to 0.5% from the previous release of 2%. It is worth noting that core pricing pressures remained stable in the most recent data, at 5.9%. As a result, the statistics for Durable Goods Orders should stay unchanged or undergo modest changes. However, a significant reduction in economic statistics suggests a drop in total demand.

Rapid Fed rate rises since March, and hawkish remarks on additional tightening have diminished bullion’s appeal as an inflation hedge. Gold prices have dropped by more than $300 since breaking beyond the $2,000-per-ounce barrier in early March.

Powell will deliver the keynote talk at the annual global central banking conference in Jackson Hole, Wyoming, on Friday, a speech that might suggest how high US borrowing costs may go. Fed funds futures are currently pricing a 75-basis-point rate rise in September with a 58.5% likelihood. The opportunity cost of owning non-yielding bullion rises as interest rates rise.

On Monday, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, dipped 0.15% to 987.56 tonnes, indicating a shift in mood. Apart from that, the remarks made by Federal Reserve (Fed) head Jerome Powell at the Jackson Hole Economic Symposium will be remembered. Fed Powell will shape the US economy and provide direction on inflationary pressures and interest rates.

Gold Technical Outlook

Gold price exhibits some bullish bias after reaching a few pips away from our waited aim of 1726.60, observing that stochastic loses its positive momentum, waiting to urge the price to begin negative trades to overcome the given level and open the road to 1700.00 as a next primary target.

As a result, we will continue to recommend a bearish trend for the foreseeable future, backed by the negative pressure produced by the EMA50, until the price rallies to breach and hold above 1755.70. Today’s trading range is likely between 1720.00 support and 1755.00 resistance.

Today’s projected trend is bearish.