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Daily Market Update

GOLD CLIMBS TO LATE-MAY HIGH AS WEAKER USD SUPPORTS MOVE TOWARD $4,600

Gold climbs to a late-May high as US Dollar weakness supports XAU/USD, while Fed rate expectations, Treasury yields and key levels near $4,529 shape the outlook.

Daily Market Update August 21, 2026

GOLD CLIMBS TO LATE-MAY HIGH AS WEAKER USD SUPPORTS MOVE TOWARD $4,600

GOLD CLIMBS TO LATE-MAY HIGH AS WEAKER USD SUPPORTS MOVE TOWARD $4,600

Gold climbed to its highest level since late May during Friday’s European session, supported by a broadly weaker US Dollar. XAU/USD also moved above its 200-day Simple Moving Average at $4,514.16, bringing the $4,529 area into focus as a key near-term technical reference.

The Dollar remains near a three-month low as softer US inflation data reduced expectations for an immediate Federal Reserve rate increase. However, Fed tightening expectations have not disappeared. According to the CME FedWatch Tool cited in the article, markets assign around a 68% probability of at least one rate increase by year-end. This reflects market pricing rather than a confirmed Fed decision.

Higher oil prices may also influence inflation expectations and US Treasury yields. Elevated yields could provide some support to the Dollar and potentially moderate Gold’s upward momentum.

Technically, the 61.8% Fibonacci retracement at $4,529.03 remains an important near-term level. The Moving Average Convergence Divergence remains positive, while the 14-day Relative Strength Index is at 67.70, close to overbought territory and indicating firm but increasingly extended momentum.

Above $4,529, the next references are the 78.6% Fibonacci level at $4,687 and the cycle high near $4,889. On the downside, key levels include the 200-day average at $4,514.16, followed by $4,417, $4,306.50, $4,168 and $3,946.

Market attention remains focused on the $4,514–$4,529 technical area, Fed rate expectations, US Treasury yields and Friday’s preliminary US Purchasing Managers Index data, which may provide further context for XAU/USD’s near-term direction.

⚠️ Risk warning: Trading forex and CFDs involves significant risk and may not be suitable for all investors. You may lose all of your invested capital. Please ensure you fully understand the risks before trading. Past performance is not indicative of future results.

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EUROZONE PMI FALLS TO 51.9 AS EUR/GBP HITS FRESH LOWS

Daily Market Update

EUROZONE PMI FALLS TO 51.9 AS EUR/GBP HITS FRESH LOWS

The Eurozone’s preliminary composite PMI fell to 51.9 in October from 53.1 in September, missing expectations of 52.7 as services and manufacturing activity slowed. Rising energy costs and concerns over France’s fiscal outlook added pressure on the Euro. Meanwhile, the UK composite PMI rose to 53.1, supporting Sterling and contributing to EUR/GBP reaching an 18-month low.

GOLD FALLS BELOW $4,000 FOR THE FIRST TIME SINCE JULY AS YIELDS AND USD WEIGH

Daily Market Update

GOLD FALLS BELOW $4,000 FOR THE FIRST TIME SINCE JULY AS YIELDS AND USD WEIGH

Gold falls below $4,000 per ounce for the first time since July as elevated US Treasury yields, a firm Dollar and expectations of further Fed tightening weigh on prices. Equity market sell-offs have also triggered bullion selling, while central bank demand and ETF inflows continue to support gold's longer-term outlook. Markets now focus on the Fed's October 28 decision for clues on the metal's next move.

SNB SAYS INCREASED WILLINGNESS TO INTERVENE NO LONGER NECESSARY

Daily Market Update

SNB SAYS INCREASED WILLINGNESS TO INTERVENE NO LONGER NECESSARY

The Swiss National Bank maintains its policy rate at 0% and says a higher willingness to intervene in foreign exchange markets is no longer necessary. The Swiss Franc depreciated around 3% on a trade-weighted basis between June and September, easing overall monetary conditions. With headline inflation at 0.8% and the 2026 GDP growth forecast upgraded to 1.5%–2.0%, the SNB expects price stability to remain intact over its forecast horizon.

FRENCH YIELDS TOP 5% FOR FIRST TIME SINCE 2002 AS MOODY’S REVIEW LOOMS

Daily Market Update

FRENCH YIELDS TOP 5% FOR FIRST TIME SINCE 2002 AS MOODY’S REVIEW LOOMS

EUR/USD trades just below 1.1250 as French 10-year government bond yields exceed 5% for the first time since 2002, adding pressure on the Euro ahead of Moody’s credit rating review. Markets are monitoring Eurozone and US PMI data, ECB and Fed rate expectations, and key technical levels, with resistance at 1.1250 and support at 1.1200, 1.1150 and 1.1100.

UK CPI HITS 3.5%: CORE AND SERVICE INFLATION ALSO ACCELERATE

Daily Market Update

UK CPI HITS 3.5%: CORE AND SERVICE INFLATION ALSO ACCELERATE

UK inflation accelerated to 3.5% in September, exceeding the 3.4% forecast. Core CPI rose to 2.8%, while services inflation increased to 3.7%, reinforcing expectations that the Bank of England may maintain a restrictive policy stance. Markets are monitoring persistent inflation pressures and the outlook for further rate tightening.

DXY GIVES BACK EARLY GAINS AS AI RISKS KEEP USD UNDER PRESSURE

Daily Market Update

DXY GIVES BACK EARLY GAINS AS AI RISKS KEEP USD UNDER PRESSURE

The US Dollar Index trades near 101.80 after retreating from an intraday high of 102.01, as concerns over the AI investment cycle weigh on the Dollar. Markets are monitoring French 10-year bond yields near 4.85%, Fed rate expectations and technical support at 101.65, with the RSI at 57 indicating that bullish momentum remains above neutral.

GBP/USD REBOUNDS FROM YTD LOW TO FRESH MONTHLY HIGH

Daily Market Update

GBP/USD REBOUNDS FROM YTD LOW TO FRESH MONTHLY HIGH

GBP/USD climbs to a fresh monthly high near 1.3325 after recovering from its 1.3135 year-to-date low. Weaker US Treasury yields, expectations for the Fed to hold rates and stronger UK GDP data support the pair. Traders are monitoring resistance at 1.3343, 1.3406 and 1.3468, with initial support near 1.3265.

WARSH WON’T PRE-JUDGE OCTOBER OR DECEMBER AS DXY SLIPS TO 101.82

Daily Market Update

WARSH WON’T PRE-JUDGE OCTOBER OR DECEMBER AS DXY SLIPS TO 101.82

The US Dollar Index slips to 101.82 as Fed Chair Kevin Warsh leaves the October and December policy decisions open. Markets will monitor inflation, employment, economic output and further Fed communication for clues on the US Dollar’s near-term direction.

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