Gold: Under pressure near 1785 ahead of Jackson Hall
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Gold: Under pressure near 1785 ahead of Jackson Hall

On Thursday, gold fell for the third day in a row on the eve of the annual meeting of the Federal Reserve in Jackson Hall. Rising Delta virus cases and unfavourable economic data from Germany, Europe's largest economy, have traders closely watch the following fundamental factors to get a clue on the next markets' movement.

Investors are increasingly curious about Mr Powell's speech on Friday after that Bank of Korea (BoK) became the first Asian central bank to raise interest rates in August. The bank raised interest rates from 0.5% to 0.75% by 0.25% to take the first step to curb inflationary consequences.

With the opening of European markets, gold is trading in a neutral range around 1785 after experiencing a significant drop in the Asian trading session.

A bearish scenario for gold is on the table in the one-hour time frame as Sellers hold the price below the EMA 50. The precious metal is trading between the support level at 1782.40 and the resistance level at 1793. If the bearish momentum persists, the sellers have support at 1782.40. Breaking this support level could pave the way for a lower target at 1780. If the upcoming fundamentals result in strengthening the dollar, the fall could continue to $ 1778 and $ 1775.50 as further targets.

Otherwise, the formation of a bullish reversal candlestick could signify an increase in buyers' motivation to take control of the market, which could set the price on the path of significant resistance levels at 1788.50 and 1793.

On Thursday, US GDP growth will be released at 14:30 GMT +3:00.

Also, The Fed's annual meeting will begin in Jackson Hole later today, while investors will be looking forward to Mr Powell's speech at the end of the meeting on Friday.