The precious metal posted modest declines by Friday’s close. This came despite the mixed bag from the August payrolls report. Fed Chair Jerome Powell also spoke late on Friday. Powell warned that central banks will have less ability to countercyclical downturns if interest rates are low. Powell’s comments come ahead of the Fed meeting in two weeks’ time.
Can XAU/USD Bounce Off the Support?
The precious metal was seen testing the support area of 1508 firmly on Friday. With the Stochastics oscillator near the oversold level, there is scope for XAUUSD to push higher. At the same time, price could also drop off the support level. However, a lower high being formed will confirm the downside in gold.