The gold market entered the last period of August with renewed upward momentum, closing the spot gold (XAU/USD) at $3,373.89 per ounce at the end of the week, while U.S. gold futures settled stronger at $3,418.50. This move is supported by the dovish language used by Federal Reserve Chairman Jerome Powell at the Jackson Hole seminar, where he emphasized that risks lean towards weaker growth and potential interest rate cuts in September. The probability of a 25 basis point cut jumped to 85%, up from 75% just hours before Powell's speech, according to CME FedWatch. This shift immediately reflected in a weaker U.S. dollar, which fell by about 1% during the day, boosting demand for non-yielding safe havens like gold. The sharp decline in the dollar opened the door for gold to expand its breakout range, and the correlation was direct. As U.S. 10-year Treasury yields fell to 4.26%, traders shifted capital into metals, lifting gold alongside silver, which jumped 2.2% to $39.01, while platinum and palladium recorded strong gains. The Relative Strength Index (RSI) for gold rose to 66, showing upward momentum without indicating overbought conditions, while the MACD indicated a bullish crossover, confirming the strength of the rally. Trading volume supported the upside, with strong buying accelerating upon breaking above $3,342, where the 50-day simple moving average had constrained previous attempts.
