Gold, EUR/USD Near Multi-Month Highs Ahead of Jackson Hole and PCE

Recent inflation data points cautiously toward a moderation in price pressures, while showing early signs that tighter financial conditions may be starting to weigh on economic growth.

As a result, market expectations for a potential return to a more aggressive Federal Reserve rate-hiking cycle have eased. At the same time, hawkish voices within the Fed continue to argue that inflation risks remain elevated and that policy should stay restrictive.

This makes Wednesday's PCE inflation release particularly important, as it could help shape market expectations ahead of the Jackson Hole symposium and provide a clearer indication of the Fed's near-term policy tone.

Equity indices remain close to all-time highs, while Gold continues to extend its recent upward trend. However, August trading conditions require additional caution. Seasonal liquidity is typically lower, market participation is thinner, and moves can sometimes become exaggerated while larger institutional players remain less active ahead of September.

Key Instruments and Levels to Watch

GOLD

Gold is showing some signs of becoming technically overbought.

• Resistance: 4,600–4,650

• Support: 4,550–4,600

The broader trend remains constructive, but the current resistance area could become increasingly important if momentum starts to weaken.

EUR/USD

EUR/USD is approaching an important resistance zone.

• Resistance: 1.1700–1.1750

A sustained breakout could open the way toward the 1.1800–1.1930 area.

• Major support: around 1.1500

Further upside would likely require additional weakness in the U.S. dollar and a more dovish interpretation of upcoming Fed signals.

US100

US100 appears to have established a significant upper boundary around 30,000, while major support remains near 27,000.

This effectively creates a range of approximately 10%, which remains difficult to trade directionally without a clear catalyst.

• Major resistance: 30,000

• Major support: 27,000

Until a decisive autumn breakout develops, moves toward either side of this range may remain temporary and vulnerable to reversal.

For now, the market may remain highly sensitive to incoming inflation data and central-bank communication.

Jackson Hole and the signals that follow it could become the next major catalyst for Gold, EUR/USD, and global equity markets.

By Born2trade market research department

Risk Disclaimer: All research and/or forecasts above reflect the author's personal opinion and cannot be treated as trading advice. Born2trade is not responsible for any trading results based on any information in this article. Trading Forex and CFDs carries a high level of risk to your capital. You may lose all of your invested funds. Forex and CFD trading may not be suitable for all investors. Please ensure that you fully understand the risks involved and, if necessary, seek independent advice.