Gold Rallies as Powell Signals Potential Rate cut
On August 22, 2025, gold surged following Federal Reserve Chair Jerome powell’s remarks at the Jackson Hole Economic Symposium. Powell suggested a likely September interest rate reduction due to economic shifts and labor market worries.
This sparked gold’s climb, reaching nearly $3,370 per ounce. The U.S. dollar weakened, and Treasury yields fell, boosting gold’s appeal as a safe haven.
The upcoming week holds critical U.S. economic reports, including GDP, unemployment claims, and the core PCE price index. These will influence gold prices. Strong data could weigh on gold, while weak numbers could propel it further.
- August 28 – Preliminary GDP: Higher GDP suggests robust growth but might pressure gold.
- August 28 – Unemployment Claims: Lower claims show a strong labor market,possibly hurting gold.
- August 29 – Core PCE: A cooler PCE could drive gold prices up.
Technical analysis shows a bullish trend toward $3,440-$3,500. The buy zone is around $3,352-$3,340, with resistance between $3,381-$3,402.
gold investing leans positive.With a mild PCE, sentiment may turn optimistic quickly. Strong GDP and job numbers, though, might dampen the spirit.
Given these factors, traders should focus on key levels. Buying opportunities look favorable, with a chance of a historic high above $3,500 this week.
