The U.S. dollar weakened sharply, providing support for Dollar-denominated Gold prices, as Powell, at the annual Fed symposium in Jackson Hole said gradual US interest rate hikes remain appropriate and there was no risk to the economy overheating and that he is prepared to do whatever it takes if inflation becomes loose. His comments were taken as dovish.
Gold prices surged on Friday breaking all near resistance level after entering in an oversold condition to hit the $1207 level. At this moment a consolidation phase has emerged with a bias to retest the $1200 level before we see another surge to reach the $1214 resistance level.
Support: 1198.6 1197.75
Resistance: 1207.8 1214.15