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  • The U.S. real-GDP expands 4.2% (YoY) in Q2.
  • Durable goods orders increase by 4.2% vs 2% expected.
  • US Dollar Index extends higher toward 95 ahead of Powell speech.

With the greenback gathering strength on upbeat macroeconomic data releases from the United States, the XAU/USD pair lost its traction and broke below $1190 to touch its lowest level since August 24 at $1183.80. At the moment, the pair is down $9.8, or 0.8%, on the day at $1184.65.

The data from the U.S. on Thursday showed that the real-GDP in the second quarter grew by 4.2% following the first quarter’s 2.2% expansion to confirm the FOMC’s view that the U.S. economy preserves its growth momentum. Other data revealed that durable goods orders rose by 4.5% on a monthly basis in August to beat the experts’ estimate of 2% by a wide margin. Later in the session, pending home sales and Kansas Fed Manufacturing Index will be released from the U.S. The US Dollar Index, which rose to its highest level in 10 days at 94.77, was last seen at 94.73, where it was up 0.48% on a daily basis.

If Wall Street cheers the strong data and starts the day on a strong note, the pair could come under a renewed pressure and extend its losses as the precious metal would have a hard time finding demand as a safe-haven.

Towards the end of the NA session, FOMC Chairman Jerome Powell’s speech will also be looked upon for fresh impetus.

Technical levels to consider

The immediate support for the pair could be seen at $1182 (Aug. 20 low) followed by $1173 (Aug. 15 low) and $1160 (Aug. 16 low). On the upside, resistances align at $1190 (the lower arm of the daily Bollinger band), $1200 (psychological level/50-DMA) and $1206 (Sep. 19 high).