Spot gold is consolidating ahead of Fed Chair K. Warsh's speech in Jackson Hole. The absence of any signal from the Fed Chair that interest rates could be raised at the September meeting, or even at any point this year, could lead to a weaker U.S. dollar in the Forex market, which could in turn support higher gold prices. Gold is already attractive as a safe-haven asset amid geopolitical tensions in the Middle East and Ukraine.
From a technical perspective, it is trading above the strong resistance level of 4578.00.
The price is below the middle line of the Bollinger Bands and above the SMA 5 and SMA 14. The RSI is at 50% and moving sideways. Stochastic is rising but remains below the 50% level.
Gold could find support and rise toward 4770.00 if Warsh indicates that the Federal Reserve is not currently considering the possibility of raising interest rates. The 4635.00 level could serve as an entry point for a long position. SL: 4509.14.
