Gold Price Forecast: XAU/USD stabilizes firmly above $1,750 as DXY slips ahead of Jackson Hole

• Gold price has established above $1,750.00 and is driving higher as DXY slips sharply.
• Fed’s Powell is expected to keep an extremely hawkish stance at Jackson Hole.
• The core PCE data for the second quarter is seen as stable at 4.4%.

Gold price (XAU/USD) is advancing gradually and has recorded a fresh four-day high of $1,756.77 in the Asian session. The precious metal is enjoying bids as the US dollar index (DXY) is witnessing a self-off ahead of the Jackson Hole Economic Symposium. The DXY has displayed a bearish open test-drive session and has declined to near Tuesday’s low at 108.36.

As investors are getting mixed responses from analysts over expected commentary from Federal Reserve (Fed) chair Jerome Powell at Jackson Hole, the FX domain is expected to remain volatile. No doubt, the evidence from data speaks that the price pressures are about to find their peak, and contraction in private sector activities compels the Fed should slow down its velocity of hiking interest rates.

However, the inflation rate still holds above 8% and in order to tame the same, the Fed’s laborious job of hiking borrowing rates is far from over.

Apart from that, investors will focus on the Core Personal Consumption Expenditures (PCE) data for the second quarter, which is expected to remain steady at 4.4%.

Gold technical analysis

On an hourly scale, gold prices are attempting a break above the 38.2% Fibonacci retracement (placed from August 10 high at $1,807.93 to Monday’s low at $1,727.87) at $1,758.40. The precious metal has poked the 200-period Exponential Moving Average (EMA) at $1,756.20. Also, the 50-EMA at $1,748.46 is advancing higher, which adds to the upside filters.

Also, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates more upside ahead.

Gold hourly chart