Gold prices on the XAU/USD chart added 0.13% in the New York session after data from the Census Bureau showed that the US economy grew by 6.6% in the second quarter of 2021. This was better than the 6.5% growth seen in the first quarter but fell short of the analysts’ predictions of 6.7% growth. The shortfall in the US preliminary GDP held back the greenback, allowing the bulls to send gold prices higher on the day.
The pair continues to be in focus as the Jackson Hole Symposium kicks off later in the session. Fed Chair Jerome Powell is expected to be one of the main speakers at the event. Statements from several Fed members will precede his comments.
Notable hawk and St. Louis Fed President James Bullard has already fired the first salvo, indicating more inflation than the Fed expected was in effect. He advocated for tapering to commence with a Q1 2022 completion date. Expect more volatility on the pair.
Technical Outlook for Gold Price
Gold price is presently testing the 1789.49 resistance level. A break of this level opens the door for the price to head to 1800.00 first, then 1815.20. The 1828/1840 resistance zone and the 1860.77 price levels form additional barriers to the north.
On the other hand, a decline below 1789.49 targets 1763.30 initially, with 1741.01 and 1719.13 serving as the additional downside targets.