Gold price falls ahead of Fed Chair Powell's speech: Analysts on key levels to watch

Gold prices experienced a decline on Friday, August 22, as a firmer US dollar reduced the demand for the precious metal. Investors are closely watching for insights from the US Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, which is expected to indicate future monetary policy directions. According to CME’s FedWatch tool, there is currently a 75% probability of a quarter-point rate cut next month, keeping investors on edge as they await Powell's remarks.

Spot gold was down 0.2% to $3,333.01 per ounce, with US gold futures for December delivery also slipping by the same margin to $3,376 an ounce. In India, gold was priced at ₹1 lakh per 10 grams for 24 karat, while 22 karat gold stood at ₹92,150 per 10 grams, and 18 karat was at ₹75,400 per 10 grams. The US dollar index remained close to a two-week high, further impacting gold's appeal to international buyers.

Rahul Kalantri, Vice President of Commodities at Mehta Equities, commented on the market volatility: "Gold has support at $3,310–3,285 an ounce and resistance at $3,357–3,374 an ounce. In rupee terms, gold has support at ₹99,050–98,750 per 10 grams and resistance at ₹99,650–99,950 per 10 grams."

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "Gold prices traded range-bound to weak over the week, slipping by nearly ?800 as rupee appreciation and a decline in COMEX gold from $3400 last week pressured domestic prices. Despite the dip, sentiment remains broadly positive as the upcoming Fed meeting is expected to deliver a rate cut, with recent US payrolls data signaling weaker economic cues. Investors are now eyeing Powell’s speech at Jackson Hole as the key event that could guide near-term sentiment. On the technical front, support is placed at Rs 98,500–Rs 98,000, while resistance stands at Rs 1,01,500–Rs 1,02,000, keeping the bias mildly bullish ahead of policy clarity."

 Aksha Kamboj, Vice President of the India Bullion & Jewellers Association, noted, "Waning safe-haven interest and a firming US dollar have pressured gold, resulting in modest losses in trading volumes. Technical support and short-covering could provide limited downside protection, but traders remain watchful of U.S. macroeconomic signals."