August 29, 2026
The price of gold suffered a significant setback following a promising rally on Friday: A surprisingly hawkish speech by Fed Chairman Kevin Warsh at the Jackson Hole economic symposium triggered a sell-off in the markets. December gold futures fell by $150.70 (-3.24 percent) and closed at $4,504.10—wiping out the gains for the entire trading week.
From a Steep Rise to a U-Turn: The Week’s Developments
The trading week had started off strong: After seven days of rising daily highs, the gold price broke through the 38.2-percent Fibonacci retracement level at $4,692 as well as the 100- and 200-day moving averages. The short-term target of $4,900 seemed within reach. Starting in the middle of the week, however, sentiment shifted:
- Strong U.S. inflation data: The higher-than-expected PCE price index (annual rate of 3.7 percent) strengthened the U.S. dollar and triggered a technical trend reversal.
- Failure at resistance: On Friday, the price attempted a rebound at $4,688 but fell just short of the key level of $4,692 and dropped well below the 200-day moving average ($4,641.20).
Key technical support levels and fundamental underpinnings
Due to the slide below the 200-day moving average, this level now acts as resistance again. From a technical perspective, the Ichimoku cloud—with levels at $4,485.50 (Span A) and $4,385.30 (Span B)—is now coming into focus as a support zone. Only a closing price below the 23.6 percent Fibonacci level at $4,435 would cast a lasting shadow over the outlook.
Despite the short-term setback, the overarching investment thesis for gold remains intact: U.S. national debt of $40 trillion, persistent inflation, and the Federal Reserve’s limited room for maneuver in monetary policy continue to provide the precious metal with a strong fundamental foundation. However, to resume the uptrend toward the $4,900 mark, the bulls must first quickly reclaim the $4,692 level.
Source：https://goldinvest.de/en/gold-price-loses-weekly-gains-fed-puts-the-brakes-on-rally-toward-usd4-900
