Gold Price Forecast: XAU/USD looks to $2,400 again as $2,350 support holds

• 
  Gold
  price
  extends
  the
  previous
  rebound
  early
  Wednesday,
  awaits
  Powell’s
  second
  testimony.
• 
  The
  US
  Dollar
  holds
  recovery
  gains
  with
  Treasury
  bond
  yields
  even
  as
  Fed
  rate
  cut
  bets
  remain
  intact.
• 
  Gold
  price
  looks
  north
  toward
  $2,400
  amid
  bullish
  daily
  RSI,
  as
  $2,350
  holds
  the
  fort.

Gold
price
is
looking
to
build
on
the
previous
rebound
above
$2,350
in
Wednesday’s
Asian
session,
as
the
US
Dollar
(USD)
consolidates
its
recovery
gains
alongside
the
US
Treasury
bond
yields.

Gold
awaits
more
Powell
and
Fedspeak

Gold
traders
weigh
US

Federal
Reserve
(Fed)
Chairman
Jerome
Powell’s
testimony
delivered
before
the
Senate
Banking
Committee
on
Tuesday,
awaiting
his
second
round
in
front
of
the
House
Financial
Services
Committee
later
on
Wednesday.

Besides,
Powell’s
testimony,
the
focus
will
also
remain
on
a
bunch
of
speeches
from
several
Fed
policymakers,
which
could
help
markets
seal
in
a
September
interest
rate
cut.

Even
though
Powell
sounded
prudent
on
the
policy
outlook,
during
his
testimony
on
Tuesday,
saying
that
inflation
had
been
improving
in
recent
months
and
that
“more
good
data
would
strengthen”
the
case
for
the
rate
cut.
However,
he
told
lawmakers
that
he
did
not
want
“to
be
sending
any
signals
about
the
timing
of
any
future
actions”
on
rates.

Markets
continued
pricing
in
over
a
70%
probability
that
the
Fed
will
lower
rates
in
September,
according
to
the
CME
Group’s
FedWatch
Tool.
Another
rate
cut
in
December
is
also
on
the
table.

Gold
price
stalled
its
rebound
near
$2,370
on
Tuesday,
following
Fed
Chair
Jerome
Powell’s
testimony,
as
the
US
Treasury
bond
yields
jumped
and
propelled
US
Dollar
back
on
the
bids.

Market
participants
also
took
Powell’s
speech
as
an
excuse
to
book
profits
on
their
US
Dollar
shorts
heading
into
Thursday’s
critical
US
Consumer
Price
Index
(CPI)
inflation
release.

Gold
price
technical
analysis:
Daily
chart

The
short-term
technical

outlook
for
Gold
price
remains
constructive,
as
the
14-day
Relative
Strength
Index
(RSI)
holds
firm
above
the
50
level.

Gold
buyers
need
to
find
acceptance
above
the
six-week
high
of
$2,393
to
resume
the
uptrend
toward
the
all-time
high
of
$2,450.
Ahead
of
that,
the
$2,400
level
could
act
as
a
tough
nut
to
crack
for
them.

Alternatively,
Gold
price
could
face
immediate
support
at
the
$2,350
psychological
barrier,
below
which
the
$2,340
demand
area
will
be
challenged.

Around
that
level,
the
50-day
Simple
Moving
Average
(SMA)
and
the
21-day
SMA
close
in.
A
sustained
move
below
the
latter
could
trigger
a
fresh
downtrend
toward
the
$2,300
round
level.