Fundamental analysis of XAU/USD

Gold prices started the week trading flat at 1916.00.
Factors such as low Treasury yields and US dollar strength, despite hawkish comments from Fed Chairman Jerome Powell on interest rates during the year at a conference in Jackson Hole, contributed to gold's resilience. In his comments, Powell pointed to the strength of the US economy and raised the possibility of a rate hike amid growing concerns about inflation. However, the market reaction was somewhat subdued, suggesting that his views were in line with traders' expectations. Given the current rate of inflation and the continued strength of the US economy, a rate hike could come as early as November. Loretta Mester of the FRB Cleveland supported this view, saying that an interest rate hike after a period of relative equilibrium is possible. 

In addition, China, which is a major consumer of gold, also announced economic support measures. However, concerns over US-China trade relations and the possibility of a slow economic recovery could put pressure on XAU/USD. 
However, gold price movement in the short term is characterized by uncertainty. The key factors to watch in the coming days are Chinese economic data, US-China talks in Beijing, July's Personal Consumption Expenditure Price Index, August employment reports and the US non-farm payrolls report, which is expected to provide more insight into the state of the economy.  As such, gold's appeal may be put to the test as rising interest rates often make low-yielding assets such as gold less attractive. However, the market seems to have rejected most of Powell's arguments, suggesting a potential strong bull rally.
  
Technical analysis and scenarios:

Price is currently at 1916.00, which is between support and resistance levels. Given that the Alligator indicator is showing a wide open mouth and its jaw (blue line) is below the lips and teeth (green and red lines), this suggests a bullish trend for the instrument. 
Main scenario (BUY)
Recommended entry level: 1922.00.
Take Profit: 1931.00.
Stop loss: 1918.00.
 
Alternative scenario (SELL)
Recommended entry level: 1906.00.
Take Profit: 1885.00.
Stop loss: 1915.00.