Gold is consolidating after a recent period of volatility, with a slightly bearish tilt for the intraday session. The overall market sentiment for gold remains cautiously bullish on a long-term, secular basis, supported by geopolitical uncertainty and expectations of future Fed rate cuts. However, the immediate daily price action is likely to be dictated by today’s US housing data, which could provide fresh clues on the health of the US economy and its potential impact on the Fed’s policy trajectory. Gold’s ability to hold above key support levels will be a critical test for bulls.

Changes to Weekly Outlook

The weekly outlook, which was defined by a range-bound-to-bullish sentiment, has not fundamentally changed. The recent consolidation in gold prices is in line with the expected market behavior ahead of a major event like the Jackson Hole Symposium. However, today’s US Building Permits and Housing Starts data could introduce short-term volatility. A much stronger-than-expected housing report could lend support to the US dollar and put downward pressure on gold, while a weak report could have the opposite effect, reinforcing the bullish case for gold. The overarching themes of geopolitical tensions and the anticipation of Fed policy shifts continue to anchor the weekly outlook.