Gold was up on Tuesday morning in Asia, with a weakening dollar giving the yellow metal a boost. Investors are now looking to U.S. economic data due later in the week to gains clues to when the U.S. Federal Reserve will begin asset tapering.
The greenback steadied from its falls after Fed Chairman Jerome Powell did not provide a clear timeline for asset tapering and interest rate hikes during the previous week’s Jackson Hole symposium. He only suggested that the asset tapering timeline could be “within 2021.”
However, Fed President Loretta Mester said she is not yet convinced that recent inflation readings will be enough to satisfy the conditions to begin asset tapering, despite the U.S. economy’s continuing recovery from COVID-19.
Although the GOLD went Up to the 1823.0 level and showing another 1823.0 Resistance for today forming a double top, but overall the market is bearish as it is in the overbought area for the last two days with a downside breakout likely sending trade to attack a 1784.0 - 1781.0 weekly low, when broken 1750.0.