Gold prices pause around 1800 ahead of the Jackson Hole event

Gold is trading in a downtrend since the beginning of June, attempting another run toward the upper line of its downward channel, while warnings of another selloff in gold are coming around as prices paused near the 1800 dollar ahead of the Jackson Hole event.

Even though uncertainties tied to the Delta spread and the weaker than expected data from the big economies like China, Australia and Japan extended some gold support, it seems 1,800 resistance level is more substantial than that buyers can pass through it this week.

Currently, in a daily time frame, As long as the price is above the weekly low at 1770, bulls hold the ground, but a decisive breakout above the weekly high at 1795 is necessary to keep the upward movement going. Alternatively, with a lack of bullish strength at the top end of the downward channel, bearish momentum might prevail, and sellers push prices lower toward weekly support at 1770. Clear penetration of this level will open the path to falling further

This week, the key event is the Federal Reserve's annual symposium holding from Thursday to Saturday. Investors are hoping for hints about when the Fed will begin tapering off the monetary stimulus. A critical step on the road to eventual rate hikes will be when the Fed announces its plans to slow its $120 billion per month asset purchasing program.

On Monday, Eurozone PMI data will be published, and Germany will report the latest reading of its Ifo index, which is expected to drop from its two-and-a-half-year high.

The first report on existing home sales will also be released on Monday, followed by the new home sales report a day later.

Wednesday will see durable goods order data, and Thursday will see initial jobless claims data for the US.

A revision of the second-quarter GDP will also be released on Thursday, and it is expected to show little change.

The July meeting minutes of the ECB is scheduled to release on Thursday when it presented updated forward guidance on interest rates and a new monetary-policy strategy designed to boost inflation.

On Friday, Fed Chair Jerome Powell will give the keynote speech at the Jackson Hole symposium, which is the most important event of the week for markets.