XAU / USD Shaken Around $ 1,800 Level Amid Powell Testimony

• XAU / USD has moved roughly around the $ 1,800 level at the start of the American session.
• Gold prices and financial markets in general await comments from Fed Chairman Jerome Powell on recent bond market movements.

The spot prices of the oro They have skyrocketed amid a rebound in trading volumes at the beginning of the American session and when Fed Chairman Jerome Powell begins the first day of his semi-annual testimony before Congress. His statement to Congress was released last Friday and contained no surprises. However, markets are focused on everything he may have to say about recent movements in the US bond market. when you speak out of the blue in the question and answer session. More specifically, real yields have soared as markets anticipated their expectations of a Fed rate hike. Now a 70% probability is assigned to the Fed raising rates by the end of 2022, a challenge to the current Fed guidance that says there will be no hikes until 2023. So Powell may want to push market prices back in some way.

The XAU / USD fell below the $ 1,800 level shortly after the US markets openedbut it has since rallied above this region as the market looks forward to what Powell will say in the Q&A. The stronger US dollar due to a broadly risk-averse market tone (US stock markets have fallen due to a drop in Big Tech and Tesla stocks) appears to have weighed a bit on gold prices. Strong US consumer confidence figures for February and faster-than-expected home price inflation in December, according to S & P / Case Shiller, have been largely ignored. Right now, spot gold is down about 0.2% on the day and is trading just above the $ 1,800 level.

Gold technical levels